Public sector workers urged to set up co-ops

It is hoped that a new bill aimed to facilitate the launch of more cooperatives in the UK will encourage security check (SC) cleared public sector staff to participate in this drive.

Prime Minister David Cameron has promised to introduce a new cooperatives bill before the next election, which will replace the myriad of existing, outdates laws on this issue and is designed to cut the amount of red tape involved in setting one up.

Cabinet Office minister Francis Maude responded by urging public sector workers to take part in this initiative, following the example of health sector staff who have already formed cooperatives delivering nearly a billion pounds worth of services.

Mr Maude asserted: "The evidence is clear: mutuals can provide better, more efficient public services and so we are giving frontline staff, across the public sector, real power to make things better."

The government is introducing rights to provide that will enable SC cleared public sector workers to bid or request to take over the services they are delivering.

It also last month launched its £10 million Mutual Support Programme so as to provide business and professional services to these employees.