Under the plans the youth service in Kensington and Chelsea will leave the council and become an employee-led mutual from April 2013.
In addition to continuing to deliver services to Kensington and Chelsea Council, the mutual will offer its provision to a range of organisations, and has so far won contracts with Hammersmith and Fulham Council, a London Primary Care Trust and a number of schools.
A total of 175 staff will transfer to the new organisation, each owning shares in the company and having a say in the way it is managed.
“We have built the service up over many years so that it is the best in London,” Elizabeth Campbell, cabinet member for family and children’s services in Kensington and Chelsea, said.
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