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Latest NewsEquality, diversity and inclusionEqual pay

Bolton taps into capitalisation fund for equal pay

by Personnel Today 20 Feb 2007
by Personnel Today 20 Feb 2007

Bolton Council is the latest to cash in on the government’s capitalisation agreement for equal pay debts.


The council borrowed £4.75m from the Department for Communities and Local Government and received £3m from the Audit Commission for achieving performance targets, it has been revealed.


The council, which has a total equal pay deficit of £8m, said it would pay the loan back to the department over a six-year period.


The capitalisation scheme allows councils to borrow against the value of their assets. The Treasury has said the fund will have a national cap of £200m – but it has so far received applications totalling £321m.


Earlier this month it emerged that Birmingham City Council had paid £6m to employees who could still file equal pay claims. A spokesman said the council had given 6,000 workers £1,000 each where there was an “apparent entitlement to a back-pay claim”. Officials are currently undertaking a job evaluation scheme.




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