Communities secretary Hazel Blears has announced that the UK national government will not provide local councils with any extra money to help them pay no win, no fee equal pay claims made by thousands of female workers.
However, this news has caused considerable concern in many councils across the UK who fear that the no win, no fee compensation claim bill for equal pay settlements could reach as much £5 billion.
While speaking to a leading business magazine she said, "Local authorities are responsible for meeting their statutory requirements and this includes their obligations under the Equal Pay Act. Local government should tackle equal pay proactively and in an affordable manner while protecting services. It is up to each local authority, as the employer, to manage their pressures affordably."
Blears also commented that the government was investigating how to ensure that agreements reached between employers and unions were not dismantled by no win, no fee solicitors.

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