Equal pay scheme to continue

Local Government Minister Barbara Follett announced on Monday that the government would continue to give councils the financial flexibility to meet and manage their one-off costs of implementing equal pay.

This is the fourth annual round of the equal pay capitalisation scheme by which councils are being allowed to borrow against or sell assets.

Unison general secretary Dave Prentis said: "This is very welcome news and should galvanise into action those councils that have still to bring in equal pay.

"Tens of thousands of low-paid women are already better off through equal pay capitalisation and many more should benefit from today's announcement."

However, there are fears that councils are having to privatise services and cut staff levels to meet equal pay claims as the government has refused to provide any direct funds to right this historic wrong.

Left-wing think tank the Institute of Employment Rights director Carolyn Jones cautiously welcomed yesterday's announcement, but stressed: "This should not be used for back-door privatisation of public assets under the guise of looking after women."

She added that the law was inadequate for dealing with equal pay as the onus was put on individual women to fight their case through employment tribunals.

"We need class action where one equal pay court victory can set a precedence in a whole sector - not just a workplace - and bring all women in that sector justice," Ms Jones said.

She also called for the tightening of the law to stop councils from downsizing salaries to meet equal pay.

Leeds City Council provoked a 12-week strike by its refuse workers last year after it decided to equalise pay by cutting the salary of male workers by £6,000 a year.

"If we had class action, their victory in forcing the authority to back down would have benefited all council workers without individuals having to clog up the tribunal system," Ms Jones pointed out.

The claims are being made under the 1970 Equal Pay Act, under which, once historical gender pay inequalities have been exposed, employees are legally entitled to claim up to six years of arrears of remuneration or damages.