1. Commercial Models Mutuals Programme
Presentation to East Midlands Councils
Wednesday 10th July
William Burgon
Policy and Commercial Advisor, Cabinet Office

2. Commercial Models Mutuals Policy
The Coalition Programme for Government made a clear commitment to new forms of organisations delivering public services
“We will support the creation and expansion of mutuals, co-operatives, charities and social enterprises, and enable these groups to have much greater involvement in the running of public services”
Commercial Models - Mutuals Programme
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3. Commercial Models Mutuals Definition
Although the sector has varying definitions, a public service mutual has three key characteristics
An organisation that has spun out of the public sector
…and continues to deliver public services
…and involves a high degree of employee control
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4. Commercial Models Mutuals Numbers
The number of public service mutuals is growing rapidly, with many more in development
Q4 2010
Q2 2013
Projected
120 70 9
Probation
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5. Commercial Models Mutuals Sectors
Mutuals are operating in a range of sectors, delivering services from the front line to the back office
Adult Learning
Community Learning
Libraries
Health
Social Care
Social Work
Fire & Rescue
Education
Children & Youth
Leisure
Housing
Community Safety
Environment
School Support
Probation
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6. Commercial Models Mutual Sectors
The growth in scope has been explosive, and developing projects will further broaden the services offered by mutuals
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7. Commercial Models Mutuals Benefits
Mutuals deliver a number of benefits which improve outcomes for staff, for commissioners, and for citizens
Service improvements
Savings and efficiencies
High growth and additional contracts
Lower absenteeism
Reduced staff turnover
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8. Commercial Models What We Do
Our work is designed to inform, guide, and support public sector staff and parent bodies along their journey to mutualise services
Campaigns
Commissioner Support
Stakeholder Engagement
Mutuals Support Programme
Mutuals Information Service
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9. Commercial Models Mutuals Support Programme
The Mutuals Support Programme provides a comprehensive package to help at every stage in the journey
Exploration
Planning
Development
Website & Hotline
‘One to Many’ Training
‘One to One’ Funding
Ambassadors & Mentors
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10. Commercial Models Mutuals in Action
A number of mutuals have already recorded impressive results, and the evidence base continues to grow
CECS
SEQOL
Social adVentures
3BM
8% savings last year
£3m new business in last 12 months
Staff innovation resulted in iPad deployment
First mutual joint-venture in wider public sector
Combines public service ethos and private sector expertise
4% increase in nurse visits per month
12% savings in first year
Building network with local VCSE providers
262% growth winning RBS SE100 award
Expansion into new and diverse service areas
20% fall in absenteeism cost
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11. Commercial Models Mutuals in Action
These independent businesses are delivering significant improvements in productivity, driving down staff absenteeism
Productivity
City Health Care Partnership CIC has delivered 4% efficiency savings, worth £600,000 a year.
Central Surrey Health made 41% productivity gains on the Stroke Ward at Epsom General Hospital, so patients get 76 more treatment slots per week.
Anglian Community Enterprise achieved 4.5% efficiency savings in 2011/2012 worth £1.4 million.
Staff Absenteeism
At Care Plus Group - average sickness pre spin-out was 22.3 days per year. It has now fallen to 10.6 days per year.
At Social adVentures, the cost of staff on sick leave before spinning out was £25,000. It is now only £2,000.
At Central Essex Community Services, days lost to sickness absence per FTE decreased by approximately two days per employee per year.
Staff from Central Essex Community Services (left) and Central Surrey Health (below) at work
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12. Commercial Models Mutuals in Action
They are also growing rapidly, both in terms of staff size and turnover, whilst delivering significant improvements in user outcomes
Growth
Social adVentures won the RBS SE100 Index Growth Champion award as its annual turnover increased 262%.
City Health Care Partnership CIC has expanded from 1,200 to 1,400 staff.
Project Salus has increased its turnover and staff 30% since spinning out.
Outcomes
NAViGO’s 2011 staff survey saw 79% of staff recording patient care as their Trust’s top priority, against a national average of 66%.
75% of SEQOL’s re-enablement patients do not require long-term term care.
After Circle’s mutualisation of Hinchingbrooke, cancer targets which were last met in summer 2010 have been met five months running.
City Health Care Partnership CIC staff at work
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13. Commercial Models Mutual JVs
Mutual joint-ventures present another take on the model, and are already successfully delivering core services in a number of sectors
3BM is the first mutual joint venture to spin out of local Government.
They have entered into a partnership with Prospects, the education employment company, bringing benefits to both sides.
By combining the public service experience and ethos of 3BM’s staff with Prospects’ capital and business expertise, 3BM is leveraging the best of the public and private sectors.
This means both parties can access skills and resources they would otherwise lack, enabling 3BM to provide a suite of high quality services to schools, including financial management, IT, and building development
In spinning out, the local councils will see £1million in savings over the next four years.
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14. Commercial Models Find Out More
Click through to the Mutuals Information Service, call the hotline, and follow us on Twitter
Online
mutuals.cabinetoffice.gov.uk
Hotline
Twitter
@mutualsgovuk
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15. Q&A Commercial Models Q&A Commercial Models - Mutuals Programme
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