Oldham MBC is offering 1,700 staff pay-outs, in order to tackle the growing problem of equal pay. The council's cabinet voted last week to offer compensation to people who might have equal pay problems. Letters are being sent out this week, and offers should be made next month. If staff accept the settlement then they will agree not to take any further legal action. Meanwhile, Rochdale MBC started its first round of settlements this week. A council spokesman said 500 staff were being invited to sign an equal pay settlement this week, and another group would be offered a deal next month. Cumbria CC is planning to raise council tax next year by 4.99% to meet the soaring cost of equal pay claims. ‘A lot of tough decisions have to be made this year so we can plan for the impact of equal pay and equal value claims,' said deputy leader, Joan Stocker. Jan Parkinson, the managing director of Local Government Employers, warned last week that the Government needed to relax the rules on council borrowing to help local authorities fund equal pay bills.