By Sally Guyoncourt Cumbria CC is on the verge of swingeing service cuts to foot the bill for a massive equal pay claim of up to £50m. The council has admitted it needs to find millions of pounds of savings to meet the compensation claims of almost 3,000 female employees. And it is ready to turn to drastic measures to find the cash. The council’s chief executive, Peter Stybelski, said: ‘We will face some serious spending pressures over the next three years, and we need to plan carefully. Taking into account the possibility that we may have to meet equal pay employment tribunal claims, we estimate we must find in the region of £10m annual savings. ‘This sort of reduction is not easy. Difficult decisions will have to be made.’ The council’s deputy leader, Cllr Joan Stocker, said ‘nothing has been decided yet’. But, meals on wheels, care packages for children with learning disabilities and subsidised bus routes are all under threat of cutbacks. The North West Regional Employers’ Organisation chief executive, Vic Hewitt, said: ‘Local authorities are faced with these massive bills, and the Government is not willing to support them. ‘The irony is, the money is going straight back to Treasury coffers.’ The council has already set aside £15m to settle equal pay claims, but the bill could rise to £50m – one of the biggest pay-outs so far – to compensate cooks, cleaners and carers who won an employment tribunal earlier this year. It follows the cases of 11 North East councils which fell foul of the 30-year-old Equal Pay Act. Cumbria is appealing the decision but if it fails the tribunal will reconvene to set the compensation amounts. mjnews@hgluk.com
