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Friday, 24 November 2006, 13:35 GMT

Council faces £50m equal pay bill

The cost of settling equal pay claims is expected to cost Cumbria County Council £50m, new figures reveal.

The council says it must make annual savings of £10m in coming years if it is to have enough cash to meet claims.

A spokeswoman said "tough decisions" would have to made over the next 12 months, which could include job losses.

The council said it had managed to put aside £15m so far to cover the costs of expected equal pay settlements, but more savings needed to be found.

'Staff informed'

Local authorities throughout the country face big bills to settle expected equal pay claims from female workers such as cooks and cleaners, who have historically been paid lower rates than their male counterparts.

A council cabinet meeting on Friday proposed increasing the authority's share of council tax by 4.99% - just below the government's limit of 5%.

Joan Stocker, deputy leader of the county council, said: "A lot of tough decisions have to be made this year.

"It's still unclear how much these claims will cost, but we're assuming it could be around £50m.

She said efforts have been made to reduce the impact on council services.

"[But] it is inevitable that there will be some impact on the public, our partner organisations and also the staff within the county council," she said.

"Any county council employees who could face redundancies as a result of these service reviews are being kept informed."



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Related to this story:
Equal pay row cash rises to £15m (15 Jun 06 |  Cumbria )
Tax collection firm in jobs boost (09 Nov 05 |  Cumbria )
Council faces £10m recycling fine (30 Sep 05 |  Cumbria )
Tax discount for flooded houses (12 Jul 05 |  Cumbria )

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