The total value of equal pay settlements secured for thousands of women working in local government has now soared past the £1 billion mark, with a major trade union warning that billions more are likely to follow.
A Decade-Long Fight for Fair Pay
This milestone follows a long-running legal battle that began in earnest after a pivotal 2012 High Court ruling. That decision confirmed that staff in predominantly female roles, such as cooks, cleaners, catering assistants and care workers, had the right to bring compensation claims against their employers for not receiving equal pay to colleagues in male-dominated jobs of equal value.
The GMB union has been at the forefront of this fight, announcing it has now settled almost 30,000 claims across six local authorities. These settlements, all reached out of court, total an astonishing £1.1 billion, with the average payout standing at around £30,000 per claimant.
High-Profile Victories and Mounting Pressure
Among the most significant recent victories was a £250 million settlement for employees of Birmingham City Council and the Birmingham Children’s Trust, secured after a four-year campaign by GMB and Unison. This case was so substantial that the council cited its potential equal pay liability, once estimated at £750 million, as a key reason for issuing a section 114 notice – effectively declaring bankruptcy – in 2023.
Some individuals in the Birmingham case received payments of up to £55,000. The largest single council settlement to date remains the £770 million deal agreed with Glasgow City Council in 2022, though workers there are still waiting for a promised overhaul of the pay structure to prevent future inequality.
Other successful claims brought by GMB include Sheffield (£60m), Leeds (£10m), Blaenau Gwent (£3m) and Falkirk (£3m).
Billions More in Claims Loom for Struggling Councils
The financial pressure on local authorities is far from over. The GMB states that a further 40,000 claims are still outstanding across 26 local authorities, including the six where deals have already been struck. These pending claims are expected to run into hundreds of millions of pounds.
The union has issued a stark warning to councils with unresolved claims, including Coventry and Bradford, urging bosses to come to the negotiating table promptly or risk "eye-watering settlement figures". GMB also expects to launch another 10,000 new claims across five more councils next year.
This crisis unfolds against a backdrop of severe financial strain for local government nationwide. A record number of councils are anticipated to request exceptional financial support from the government in the 2026-27 financial year, despite recent funding reforms.
The ongoing wave of claims underscores the enduring gender pay gap within the public sector, where roles traditionally held by women have been systematically undervalued compared to those held by men, such as refuse collectors and road workers, for decades.
