Birmingham equal pay bill could be less than £760m

Max Caller, lead commissioner at Birmingham City Council, said the £760m bill was "a maximum potential liability"

The bill to settle Birmingham City Council’s equal pay liability could be below the £760m cited in its latest budget.

Max Caller, the lead commissioner appointed by the government to oversee the financial recovery of the council, has said the figure is “not a real number” and is simply there for “accounting purposes”.

Mr Caller told a meeting of the council’s scrutiny committee on Tuesday: “The number that’s in your budget to settle equal pay, of around three quarters of a billion, is a maximum potential liability.”

He said the figure that would matter was whatever settlement figure was agreed with the GMB union.

He added: “Anybody who asks you questions about it, just say that’s the number until it’s not the number. Because it is pointless to go through an exercise of asking esoteric questions of things which don’t matter.”

The council is currently in the process of trying to agree a new job and grading system which it hopes will pave the way for a settlement being agreed.

However, GMB members have already voted for strike action over delays to reaching a settlement, with strikes expected in schools in the coming weeks.

As well the equal pay claims, the council faces issues with reduced government funding, rising costs and increased demand for services

The dispute relates to claims staff in female dominated roles, such as teaching assistants, have historically been underpaid in relation to those in male dominated areas of the council, such as waste collection.

The council declared effective bankruptcy last year. It recently signed off a budget which included £150m of cuts over the next 12 months with another £150m of cuts planned next year.

Residents were also hit with a 10% council tax rise with another 10% planned in the next budget.

As well the equal pay claims, the council faces issues with reduced government funding, rising costs and increased demand for services.

It must also contend with a bill of about £130m to fix issues with the failed implementation of IT and finance system Oracle.