More help to right unequal pay in councils

Local Government Minister Barbara Follett has today confirmed the Government will continue to give councils the financial flexibility to meet and manage their one-off costs of implementing equal pay by enabling them to borrow against or sell assets.

Today’s announcement - welcomed by local government and trade unions - will mean councils can settle compensation claims for thousands of employees - mostly women on low wages – and meet the pay promises that they have made.

With Government help, councils have made real progress in recent years settling compensation claims for historical pay inequalities. It is estimated that over half the total liability for equal pay compensation has been paid.

Since 2006, Central Government has given English councils permission to raise over £1.64 billion under a process known as equal pay capitalisation - including £500million last September.

Local Government Minister Barbara Follett said:
"Work of equal value deserves equal pay for every employee in any job in the country including local government. Thousands of council workers – women in particular – have lost out because of historically unfair pay arrangements, which in some cases persisted for years.

"Councils and Unions are working hard to get pay to where it should be and this Government will continue to do everything it can to see that this wrong is righted as fast as possible.

"Today the Government is committing to another round of financial support so councils can deliver their equal pay compensation promises without having to sacrifice public service levels or increase council tax – already we have permitted over £1.6bn for the cause."

Unison General Secretary Dave Prentis added:
"This is very welcome news and should galvanise into action those councils that have still to bring in equal pay. It shows the Government’s continuing determination to end years of pay inequality in local government.

"Tens of thousands of low-paid women are already better off through equal pay capitalisation, and many more should benefit from today’s announcement."