Equal Pay claims against Birmingham City Council soar to £890m

The liability estimate for Equal Pay claims against Birmingham City Council has increased by £130 million following a round of new claims and revised figures.

In 2012 a group of 174 former care, cleaning and catering employees (all female) who had retired, won the right to make backdated Equal Pay claims against the council.

Britain’s largest local authority, faced with fresh claims and rocketing liabilities, will be forced to sell off assets to be able to settle the debt. Possible solutions could include the New Street Grand Central Shopping Centre, the NEC Group or Birmingham Airport.

Audit committee member Councillor Barry Henley commented: “This £890 million stands as a monument to our incompetence.”

The initial liability was compounded by the council failing to implement equal pay changes properly, and it continued to make discriminatory bonuses even after the issue had been identified.