City council faces more than 1,000 equal pay claims

An external auditor's report by Grant Thornton, considered by the council's Audit, Standards & General Purposes Committee on Tuesday (23 June), said the authority had received around 1,063 equal pay claims.

The claims cite a number of areas of potential gender pay inequality.

The report said the council believes that the claims are defensible and has commissioned external legal advice to advise the council on potential defences or any potential risks they may pose.

The report said: "This process is likely to take at least two years. The council does not therefore currently have any reliable data upon which to make any financial assessment or judgement for inclusion in the statement of accounts, and therefore has disclosed this issue as a contingent liability."

According to Grant Thornton, the council operates a job evaluation scheme under which all posts are assessed, and it keeps its pay and allowances structure under review.

The auditor's report also included the council's responses to questions raised during the audit.

The council said it had received "a significant number of equal pay claims which may ultimately result in a potential liability but which the council currently expects to defend and is taking external advice".

It added: "Where litigation or contractual disputes are at an advanced stage and the council can estimate any loss with reasonable certainty... these are included as an accrual or a provision."

A further response stated: "The council has also received a significant number of Equal Pay claims that are also unquantifiable. The council is seeking detailed external legal advice to form its defence. Whilst any such claim may give rise to a potential liability, at this stage there is no identified or quantifiable liability for the council to recognise."

Adam Carey