Equal pay settlements for female council workers pass £1bn | Equal pay

Equal pay settlements for female workers at local councils have passed the £1bn mark, with thousands more expected next year.

Legal claims have been brought against local councils on behalf of people in female-dominated roles, such as cleaners or carers, who for years have been denied the conditions and benefits given to employees in traditionally male-dominated jobs.

The trade union GMB said it had secured settlements for thousands of workers at six local councils totalling £1.1bn.

The union said that almost 30,000 claims had been settled so far, all out of court, for an average amount of about £30,000. Thousands more claims are expected next year.

Last week, GMB and Unison claimed a “historic” victory for thousands of employees of Birmingham city council and Birmingham Children’s Trust after a four-year campaign led to a settlement agreement worth about £250m.

This has been among the most high-profile equal pay cases, as it was used by the council to justify declaring effective bankruptcy in 2023, although back then the potential liability was estimated to be much higher – at about £750m.

However, the decision to issue a section 114 notice recently came under question after an analysis by accounting academics suggested the council’s financial position was better than senior officers made out.

GMB said some employees in the Birmingham city council case ended up receiving sums up to £55,000.

Under the Equality Act 2010, women and men must receive the same pay and contractual terms, including when doing roles that are different but hold “equal value”.

Equal pay claims typically argue that roles more commonly held by women, such as carers, administrators and teaching assistants, come with worse pay grades and conditions than male-dominated jobs like waste collection.

The largest sum secured so far from a single council is Glasgow, after a deal was struck in 2022 for a total £770m. However, workers are still waiting for the council’s promised redesign of its pay and grading structure to fix equal pay issues.

The other successful cases brought by GMB have been at Sheffield (£60m), Leeds (£10m), Blaenau Gwent (£3m) and Falkirk (£3m).

The union said that a further 40,000 claims were still outstanding across 26 local authorities, including the six where deals have already been done, which will probably run into hundreds of millions of pounds.

The other local councils with pending claims were Dundee, Fife, Renfrewshire, West Dunbartonshire, Argyll & Bute, Brighton, Southampton, Bristol, Swansea, Cardiff, Sunderland, Coventry, Cumberland, and Westmorland.

Councils across the country have been struggling financially, and a record high number of local authorities are expected to ask the government for exceptional financial support in 2026-27 – despite government reforms that will boost funding for councils in deprived areas.

GMB also said that next year it expects to launch another 10,000 claims across five more local councils. The union has warned local authorities including Coventry and Bradford urging council bosses to come to the negotiating table or risk “eye-watering settlement figures”.