Not to defend them, but is the private sector any better?
"Insurance companies, supermarket chains, laptop vendors" I'm sure that those guys are not perfect, but by any means, to say that the private sector is better at listening to their customers is, at least for large organizations, not true. Much less for organizations that deal with a comparable size/segment customer base.
The truth is that only the public sector is exposed to this level of auditing, and it's all right since it's being paid by taxpayer money and thus everybody has the right to see how they perform.
Nobody has access to the "customer feedback" statistics of the private sector. The private sector is.... well, private, and you'll never hear from their horror stories unless the press highlights them.
I'm not a Briton, but where I live the tendency to outsource public duties to the private sector is growing, always with the justification of having better service or lower cost, and the UK is often used as a model. Sorry, but I feel that this is not true in a lot of cases, and whatever reasons are used to do that almost always tend to prove wrong in the long run. Fortunately, there are already enough failed privatizations in the UK to be used as counterexamples.