Birmingham City Council has revealed it will have to pay up to £760m to settle equal pay claims.
To date, the local authority has paid a total of £1.1bn settling equal pay claims after a 2012 Supreme Court ruling found hundreds of mostly female employees had not received the same bonuses offered to their male counterparts.
However, analysis following the implementation of a new IT system, Oracle, found the council has an equal pay liability in the region of £650m and £760m, which is growing by between £5m and £14m a month.
The council’s entire revenue budget for a year is £750m. The local authority warned there would be ‘significantly fewer resources available’ to the council going forward.
In a statement on their website, Birmingham City Council apologised for their failure to get the situation under control and said they were in discussions with the Department of Levelling-Up, Housing and Communities.