Published: 03 March 2009
Summary
Healey: Councils must right the wrong of unequal pay
Detail
Local Government Minister John Healey has today announced more support for councils to deliver equal pay for thousands of workers, and end years of unfairness.
Councils have made real progress over the past few years to make equal pay back payments to thousands of employees - mainly women.
To maintain that momentum, Mr Healey has confirmed that councils will next year be given additional financial flexibility to meet and manage their one-off costs of implementing equal pay by enabling them to borrow against or sell assets.
Since 2006, councils have been granted permission to borrow against or sell assets to the tune of over £1billion to help meet the costs of equal pay - including £455million last September.
This has been widely welcomed by local government and trades unions as practical support that enabled them to meet their own commitments.
Local Government Minister John Healey said:
"Work of equal value deserves equal pay, in councils as in any sector.
"Thousands of council workers, and particularly women, lost out due to unequal pay, which in some cases persisted for decades. It is for councils, working with local unions, to right this wrong.
"I want to do everything possible to support them to build on the progress made so far - so I am pleased to offer councils greater financial flexibility to meet and manage their one-off costs of implementing equal pay, by allowing them to borrow against or sell their assets.
"This responsibility is not new to councils - and in this tough economic climate, it is more important than ever that they work to make equal pay settlements, while at the same time continuing to deliver good quality services and keep council tax increases to a minimum for local residents.
"And I will be issuing guidance on the process shortly, which will make clear that directions cannot be used to fund direct payments to solicitors - including no-win, no-fee solicitors."
Chair of the Local Government Employers, Sir Steve Bullock, said:
"Councils want equal pay within their workforce and are working hard to achieve it. This announcement is a major step along the road of achieving equal pay for the local government workforce.
"Providing a fair settlement on equal pay remains an urgent issue for local councils who must act in the best interests of local tax payers as well as all staff and is a clear indication that Government shares our determination to resolve the issue and understands the size of the challenge involved."
Unison General Secretary Dave Prentis said:
"This is a great step forward for thousands of women working in local councils who have suffered pay injustice for years. Women have been doubly hit by unequal pay and by the effects of these difficult economic times. It shows that the Government is sticking to its commitments to deliver equality and fairness throughout the local government workforce.
"We are very pleased that the Local Government Minister has recognised the role of the unions in bringing about equal pay and that he has closed the door to the no-win, no-fee solicitors making money out of this process."
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