Youth services team at London council becomes first of kind to spin out

The youth services department at the Royal Borough of Kensington and Chelsea has become the first such team to ‘spin out’ of local authority control.

The service became a public service mutual – Epic CIC – from 1 January, with 142 staff owning shares. It currently operates four youth centres and also operates out of sites run by the voluntary sector.

Epic CIC has agreed a five-year deal to continue to provide the council and plans to market its services to other local authorities.

Law firm Trowers & Hamlins advised Epic CIC on the spin out, including the contract negotiations, pensions arrangements and governance issues. This support was provided through the Cabinet Office’s Mutual Programme.

Partner Rob Beiley said: “Councils up and down the country continue to face very difficult decisions when it comes to maintaining the best possible public services against a backdrop of reduced public expenditure.

“Public service mutuals offer councils a real alternative to the traditional models of in-house or outsourced delivery, and Epic CIC is a truly inspiring model for the delivery of public services."

Brendan O’Keefe, Epic CIC's managing director, said: “It’s been a long journey to get to this point and we have taken the time to ensure that everything is in place so we can successfully stand on our own two feet from day one.”