Equal Pay Settlements for Female Council Workers Surpass £1bn
Settlements totaling about £1.1bn have been secured for around 30,000 workers across six local councils, with an average payment of about £30,000, all resolved out of court, according to GMB.
Birmingham City Council and Birmingham Children’s Trust reached a settlement worth about £250m after a four-year campaign. This deal was linked to Birmingham's 2023 section 114 bankruptcy notice, with earlier liability estimated at about £750m, though later accounting analysis questioned that figure.
The largest single council settlement was Glasgow's £770m payout in 2022, with workers still awaiting a redesign of pay and grading to resolve equal pay issues. Other successful settlements include Sheffield (£60m), Leeds (£10m), Blaenau Gwent (£3m), and Falkirk (£3m).
Around 40,000 claims remain outstanding across 26 local authorities, including those with agreements, potentially amounting to hundreds of millions in further settlements. GMB expects to launch approximately 10,000 new claims across five additional local councils next year and has warned Coventry and Bradford councils to negotiate to avoid substantial settlements.
Councils nationwide are under financial strain, with a record number expected to seek exceptional government support in 2026-27 despite reforms boosting funding for deprived areas. Under the Equality Act 2010, pay and contractual terms must be equal for roles of equal value even if the duties differ.
