Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, if she will make an assessment of the potential impact of equal pay legislation on the finances of (a) Birmingham City Council and (b) other local authorities.
Local authorities are independent employers responsible for complying with employment legislation and so the management of equal pay claims is a matter for councils. This includes conducting an assessment of the financial impact of such claims.
The government does however, fund the Local Government Association to run a Sector Support Programme, which includes providing support and guidance for councils on equal pay issues. In addition, in line with the government’s wider approach to Exceptional Financial Support, we stand ready to speak to any council that is experiencing financial difficulties, including as a result of equal pay.
As I confirmed last July (Written questions and answers - Written questions, answers and statements - UK Parliament), Birmingham Council’s current estimate of the Equal Pay liability is £867m. The Government has provided in-principle Exceptional Financial Support to support the Council to set a balanced budget, including on the Equal Pay liability.