Councils have been given the go ahead to raise £455m to meet equal pay liabilities. Local government minister, John Healey, announced on 26 September that 34 councils had been cleared to borrow against, or sell, some of their assets in order to cover the cost of outstanding equal pay claims by low-paid female staff. His announcement followed two controversial High Court rulings which made pay protection potentially illegal. Authorities involved in the capitalisation programme include Cumbria and Redcar and Cleveland, which have been at the centre of controversies surrounding equal pay agreements involving ‘no-win, no-fee' lawyers, such as Stephan Cross (pictured above). Last year, Mr Healey announced £500m in capitalisation permissions for 46 councils, many of which had now settled claims. It takes the figure to more than £1.1bn, highlighting the Government's eagerness to settle staff liabilities which can be backdated for six years. It was only in 2004 that courts insisted councils should implement equal pay scales, despite the introduction of legislation in the early 1970s. Mr Healey said: ‘Some councils have let unequal pay persist for decades. I'm determined to see councils settle [these] obligations. Local government workers should get the equal pay to which they are entitled.' Unison, one of the trade unions campaigning for settlements, said Mr Healey's announcement was a ‘huge boost'. General secretary, Dave Prentis, said: ‘[It] shows that the Government is serious about delivering equality and fairness throughout the local government workforce.' Other councils given permission to raise revenues to fund settlements include Liverpool and Wolverhampton, which announced recent job cuts because of tightening finances.
