Government insourcing move shows why Our Work Matters

The workers affected include cleaners, caterers and security staff who keep government buildings running every day – but who are currently employed by private companies who are contracted by the government.  

For too long, many outsourced workers have faced lower pay, fewer rights and less job security than directly employed colleagues, despite carrying out vital work.

Now, Chancellor Rachel Reeves has confirmed that when the current outsourcing contract expires in 2028, these workers will be brought back in-house as government employees and will therefore enjoy public sector pay and conditions.  

The move follows discussions between the government and PCS union and is a first step towards realising the government’s manifesto commitment to overseeing the biggest wave of insourcing in a generation It is an important first step towards delivering the government's pledge to create the biggest wave of public service insourcing in a generation. 

But this change didn't happen by accident. It happened because workers organised, unions campaigned and people stood together to demand better.

The problem with outsourcing

For decades, outsourcing has been presented as a way to save money and improve efficiency. In reality, it has too often created a two-tier workforce, where workers doing essential jobs receive worse pay and conditions than colleagues employed directly by the organisation they serve.

Across the public sector, outsourced workers clean buildings, provide security, prepare meals and keep services running behind the scenes. Yet many have experienced insecure work, inadequate sick pay and fewer workplace protections.

That is why the TUC and affiliated unions launched the Our Work Matters campaign.

The campaign brings together outsourced facilities workers from different sectors and workplaces to campaign for fair treatment, decent pay and an end to outsourcing practices that leave workers worse off.

Proof that change is possible

This week's announcement shows that there is an alternative.

Bringing services back in-house can improve accountability, strengthen public services and ensure workers receive fairer pay and conditions. Instead of public money being diverted into private profits, more resources can be invested in delivering quality services and supporting the workforce that makes them possible.

Most importantly, this decision demonstrates the power of collective action. When workers come together through their unions, they can challenge unfair practices and secure meaningful change.

The work isn't finished

While this announcement is welcome, there is still much more to do. 

Hundreds of thousands of outsourced workers remain employed across public services and publicly funded contracts – from librarians delivering local services, bin workers keeping our streets clean, rail workers keeping the country on the move, and care workers supporting our loved ones. Many continue to face the same challenges that government facilities workers have experienced for years.

The challenge now is to build on this momentum and ensure more workers benefit from the security, dignity and fairness that direct employment can provide.