WIREDGOV

Thousands of underpaid workers stand to get half a billion pounds in backdated equal pay settlements in another major step towards ending years of unfairness, Communities Secretary John Denham announced today.

Thirty-seven councils are being given the go ahead by John Denham to borrow against or sell assets up to £501m so they can meet and manage the one-off costs of settling their equal pay promises faster.

Today's announcement - welcomed by local authorities and trade unions - will assist councils to accelerate their equal pay commitments. This will help councils to pay many thousands of employees - mostly women on low pay - the backdated pay promises that they are still owed.

Since 2006 central government has given English councils permission to raise over £1.6bn for equal pay costs under a process known as equal pay capitalisation.

John Denham said:

"Work of equal value deserves equal pay for every employee in any job, and that includes local government. Thousands of council workers - women in particular - have lost out because of historically unequal pay arrangements, some of which have persisted for years.

"Councils and unions are working hard to right this wrong and this Government wants to do everything it can to see the playing field levelled as fast as possible. Today I am authorising councils to raise a further £501m to deliver that promise faster - this will take the amount we have permitted to more than £1.6bn.

"This latest settlement means that the council involved will be able to continue to make these payments without having to sacrifice public service levels or increase council tax."

Dave Prentis, UNISON General Secretary, commented:

"This announcement is a big step forward, and will allow more councils across the country finally to close the gap between pay rates for men and women. We welcome the Government's continued commitment to allowing councils to raise cash to fund equal pay in this way. It shows they have been listening to our advice about how they can help local authorities meet the equal pay challenge.

"Ending the injustice of unequal pay for women is one of the most important issues for UNISON, and for our one million women members. In the 21st century it cannot be right that some women still get paid less than a male colleague in the same job, or in a job of equal value.

"UNISON will continue to work hard to tackle the gender pay gap. We know that collective bargaining, as opposed to lengthy court action, is the best way to bring about equal and fair pay for all."

Notes to editors

1. Capitalisation directions give permission to local authorities to meet revenue costs out of capital resources, either through borrowing or capital receipts.

2. To date, the government has issued over £1.1bn in capitalisation directions for equal pay back-pay.

3. This is the fourth annual round of capitalisation authorised by the government to help authorities with the one-off cost of equal pay back-pay.

4. Following Treasury agreement Communities and Local Government is today issuing £501m in directions for equal pay back-pay to the following 37 authorities:

• Basildon
• Blackpool
• Birmingham
• Bury
• Cumbria
• Devon
• Dudley
• Gateshead
• Hertfordshire
• Kingston upon Hull
• Kirklees
• Leeds
• Liverpool
• Luton
• Newcastle upon Tyne
• North Tyneside
• Northamptonshire
• Northampton
• Northumberland
• City of Nottingham
• Peterborough
• Portsmouth
• Redcar and Cleveland
• Rochdale
• Salford
• Sheffield
• South Tyneside
• Southampton
• Stafford
• Sunderland
• Swindon
• Tewkesbury
• Walsall
• Waltham Forest
• West Somerset
• Wolverhampton
• York

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