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Birmingham City Council and Unions Agree Equal-Pay Settlement Reported at £250 Million

The confidential deal is far lower than figures that triggered the council’s financial emergency.

Overview

  • UNISON, GMB and Birmingham City Council signed a framework agreement to settle historic equal pay claims for council and Birmingham Children’s Trust staff, with payments expected to begin within weeks.
  • Insider reporting places the settlement near £250 million covering about 6,000 claims, compensating predominantly low‑paid women such as teaching assistants, catering staff and care workers.
  • The agreement is confidential and made without admission of liability, and the council has pledged reforms to job evaluation and pay structures; the lead commissioner called it an encouraging step.
  • The reported total is far below earlier projections of roughly £650–£760 million that underpinned 2023 Section 114 notices, government intervention, spending freezes and deep service cuts.
  • Councillors and academics argue the previous liability figure was overstated and urge a public inquiry, while the council says the cost falls within the exceptional financial support package agreed in January 2024.