Cabinet Office unveils identity of first Whitehall service set to become mutual

The body that administers the delivery of civil service pension schemes, My Civil Service Pension, is set to become the first organisation in central government to spin out and become a mutual under plans announced today.

The Cabinet Office said the government, MyCSP employees and a private sector partner would all have a strong material interest in the proposed mutual joint venture. It is also looking at how to offer a stake to pension scheme members.

Cabinet Office Minister Francis Maude said: “Too often there’s been a binary choice between the government providing a service itself, or outsourcing it to the private sector. These choices have historically been driven by a belief that services have to be controlled centrally – with a one size fits all approach that has left little room for innovation.”

Maude said the government was looking at more innovative ways to structure services. “We know that employees who have a stake in their business, or take ownership of it completely, have more power and motivation to improve the service they run. They can also benefit from partnerships with private or voluntary sector organisations which can bring in capital and expertise.”

The minister added: “For the private sector, which can no longer expect the generous margins of the past, tapping the talent of frontline staff to improve efficiency will be a priority. The state too can keep a stake so that taxpayers benefit from the rising value of an improved service.”

MyCSP employs around 400 staff. Its chief executive, Phil Bartlett, said: “At MyCSP we are proud to be the first pension administration service to pioneer an innovative mutual joint venture between the government, employees and a new private sector partner. By taking the opportunity to mutualise we can better acknowledge our people and their expertise – and access valuable additional resources and expertise in the private sector.”