NORTH EAST councils have been given the go-ahead to tackle long-standing equal pay claims which could run into millions of pounds.
The Department for Communities and Local Government has given four local authorities in the region the green light to sell assets or borrow money to meet thousands of claims.
Newcastle, Northumberland, North Tyneside and Sunderland have all received the permission. It is understood Gateshead and South Tyneside had already reached a deal with the Government.
The claimants include women cleaners, carers and lollipop ladies who discovered they were being paid less than men in equivalent roles since the 1990s.
Many launched joint claims for extra wages through their trade unions but it has taken years to reach a deal.
Communities Minister Bob Neill said: “Pay inequalities of the past have left thousands of hard-working council employees, mainly women, out of pocket.
“By giving councils the go-ahead and financial flexibility to settle pay inequalities we are enabling them to restore fairness whilst continuing to manage budgets.”
Sue Roberts, a 52-year-old a former assistant cook in Northumberland, has had her claim against the council in the system since 2006. She said: “We’ve heard this all before. Not only has equal pay been flagrantly abused, even in legal defeat the council blatantly thumb their noses at it.”
Under the Government initiative councils can borrow money from any willing lender against guaranteed revenue as well as selling assets. A spokesman at Newcastle City Council said: “We have received permission to capitalise £3m of expenditure. This does not mean we will receive any extra money, but will be able to spread this cost over a longer period rather than having to fully fund these costs in the current budget.
“This will help the council to deal with historic liabilities that previously resulted in claims against the council for equal pay.”
North Tyneside Council has settled 5,719 cases with another 592 to negotiate. The council has already borrowed money to settle equal pay claims but it is not secured against council assets. Northumberland County Council said: “We welcome the flexibility this announcement gives us.
“The council and trade unions have agreed a way forward in settling outstanding equal pay claims. A number of offers have recently been made and the council expects to make more offers in future.”
Sunderland City Council said it had been “defending” approximately 3,000 equal pay claims from current and past workers.
The council is studying the details of the announcement.
