Birmingham council faces insolvency over £760 million equal pay liability

Birmingham City Council, one of Europe's largest local authorities, announced today that "the Council is still in a position where it has to finance the equal pay liability that has accrued to date (between £650 million and £760 million), but it does not have the resources to do so."

The statement emphasized that officials will tighten existing spending controls, but insolvency means an immediate halt to all new spending except for the protection of vulnerable individuals and legal services.

Hundreds of employees, mostly women, working for the council had applied to the High Court in 2012, claiming they had not received bonuses given to male-dominated roles.

The High Court ruled in favor of the employees on the grounds of "discrimination" and ordered the City Council to pay bonuses to those in these roles under the title of 'equal pay claims.'

Birmingham City Council had paid £1.1 billion to claimants in this regard to date.