Communities and Local Government
A selection of images representing communities.
Direct contact 020 7944 4400- contactus@communities.gov.uk
- Corporate
- Newsroom
- Latest news
- More support for councils to deliver equal pay
More support for councils to deliver equal pay
| Published | 5 February 2008 |
|---|
Local Government Minister John Healey MP today promised further support for councils implementing equal pay in a move to speed up the process.
John Healey confirmed the Government will continue to support councils to meet their equal pay obligations through a further equal pay capitalisation round in 2008-09. This gives councils a clearer process and the flexibility they need to manage their one-off costs of implementation.
On September 28 2007, the Government allocated £500million of equal pay capitalisation directions to 46 authorities in England, giving them financial flexibility to make one-off back-payments to about a hundred thousand employees - mostly women.
John Healey MP said:
"Councils are making real progress on implementing equal pay, and almost half have now completed or implemented their reviews.
"But progress and determination still varies in different areas, and I want many more authorities to tackle this in an active and affordable manner. It is only right that people benefit from their right to equal pay as quickly as possible.
"We have already backed councils with the go ahead to capitalise £660m to date.
"I can confirm that there will be another programme for 2008-09. The further round of capitalisation will allow councils the financial flexibility to spread the cost over future years, and help them work with local partners to introduce equal pay more quickly.
"I will issue revised guidance on the capitalisation process shortly. This will make clear that directions cannot be used to fund direct payments to solicitors, including no-win no-fee solicitors. Authorities will be invited to apply for this new round by the end of May with directions issued by the end of September."
Chair of the Local Government Employers, Sir Steve Bullock, said:
"Councils want equal pay within their workforce and are working hard to achieve it. This announcement is an excellent step along the road of achieving equal pay for the local government workforce.
"Providing a fair settlement on equal pay remains an urgent issue for local councils who must act in the best interests of local tax payers as well as all staff and is a clear indication that Government shares our determination to resolve the issue and understands the size of the challenge involved.
"A negotiated settlement between employers and unions remains much the best long term way to deal with this difficult problem. The chaos caused by tribunal cases led by No-Win, No-Fee lawyers damages future planning for local services and now needs to be sorted out for the benefit of employees, employers and the taxpayer."
Dave Prentis, UNISON General Secretary said:
"Today's announcement is a welcome boost for low paid women workers in local government and shows clearly the commitment of Minister John Healey to the principles of equal and fair pay. It builds on the funds released last September to allow councils to deal with this long standing issue.
"UNISON is committed to eradicating unequal and unfair pay. We believe that collective bargaining, rather than lengthy court action, is the best way to ensure equal and fair pay for all. More councils will now have no excuses for not delivering equal pay for their workforce."
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. The Government issued £500m of capitalisation directions for equal pay back-pay on 28 September 2007 to 46 local authorities in England. In 2006-07 there were 35 equal pay capitalisation applications approved by Government totalling £160.5million.
3. This capitalisation round is in addition to the annual routine capitalisation process that the Government administers to help authorities with one off unanticipated costs other than equal pay.
4. The amount of directions issued will be announced in September. This will be decided after taking into account the demand for capitalisation, the resource available to authorities and the wider fiscal position.
5. Communities and Local Government has also been working with the Department for Children, Schools and Families who will be issuing further advice shortly for local authorities, setting out the position on funding back-pay for school support staff.
Keep up to date with the Department by following us on Twitter (external link).
Media enquiries
Visit our newsroom contacts page for media enquiry contact details.
