A new pension scheme for Britain’s civil servants has been launched today. My Civil Service Pension (MyCSP). MyCSP "the first 'John Lewis style' business created from a central government service", according to the Cabinet Office.

The scheme has been launched by Francis Maude MP and former Cabinet Minister Lord Hutton will become the first chairman of the scheme. MyCSP will provide employees with a 25% ownership stake, board level representation and profit share.

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 mutual, 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.”