Member Article

Are we there yet?

The Government have launched MyCSP Ltd, the first ‘John Lewis style’ business created from a central government service.

MyCSP Ltd will be responsible for administering pensions for the Civil Service and will have a Mutual Joint Venture model, giving employees a 25% ownership stake, representation at board level and a profit share.

The new company, which will be responsible for 1.5 million Civil Service Pensions, will cut costs for taxpayers reaching savings of 50% by 2022, whilst also improving the service provided.

At the launch of the scheme, Minister for the Cabinet Office Francis Maude said: We no longer face a binary choice between public services delivered by state monopoly and straight privatisation. That is why I am a passionate supporter of mutuals which will help Britain grow a more diverse economy.

“As a mutual, MyCSP will deliver better services for its pension scheme members, millions of pounds of savings for the taxpayer and a real sense of ownership for employees over what they do.

“We are transforming a neglected back-office operation into a new competitive and responsible business – the rest of the world is watching.”

The Equiniti Group’s Paymaster will join the venture with a 40% stake, bringing valuable business expertise and capital investment. The Government will retain 35% to ensure taxpayers can benefit as the business grows in value.

Lord Hutton of Furness will be the first chairman of MyCSP Ltd, and is now set to take a leading role in the Government’s plan to give more ownership, responsibility and power to those running the public services.

He said: “I am a firm believer in the power of engaging employees to drive innovation. MyCSP Ltd builds a powerful partnership that will drive up standards and reduce costs.

“Providing a high quality service to scheme members will be vital to ensuring they never lose sight of the true value of their pension. I am proud to accept a role in this ambitious project.”

Mark Lund, the former Chief Executive of St. James’s Place Capital PLC, will Chair the MyCSP Ltd Employee Partnership Trust charged with protecting the employees’ interests.

It is hoped that MyCSP will help to protect frontline public services, whilst bringing public spending under control. It is the first central Government mutual, but many already operate successfully in the public sector. Research shows that employee ownership can boost productivity by up to 19%. John Lewis, one of Britain’s best known mutuals, continually tops customer satisfaction polls and has half the average staff turnover and sickness absence of the retail sector.

This was posted in Bdaily's Members' News section by Stephen Catchpole .