Birmingham City Council – known as the UK's second largest city – has filed for bankruptcy. The situation arose after receiving claims of between 650 and 760 million pounds sterling (about 950 million dollars) to settle equal pay claims.
The agency issued a notice from the Section 114 stating that you cannot balance your budget without help. "Birmingham City Council has issued a s.114 Notice as part of the plans to meet the Council’s financial liabilities relating to Equal Pay claims and an in-year financial gap within its budget. A Statement has been published on its official website.
"In June the Council announced that it had a potential liability relating to Equal Pay claims in the region of £650m to £760m, with an ongoing liability accruing at a rate of £5m to £14m per month. The Council is still in a position where it must fund the equal pay liability that has accrued to date (in the region of £650m to £760m), but it does not have the resources to do so," the City Council added.
"All payments must stop"
The City Council explained that senior officials and members of the City Council are committed to addressing the financial situation and when more information is available, they will share it. "The Council will tighten the spend controls already in place and put them in the hands of the Section 151 Officer to ensure there is complete grip. The notice means all new spending, with the exception of protecting vulnerable people and statutory services, must stop immediately." the City Council said.
The start of payments for equal pay demands dates back to 2012. This was a case brought by 174 women who worked for the City Council in traditionally female jobs, such as domestic servants, cooks and cleaners and who received a basic salary. Men with the same wage level in traditionally male jobs, such as garbage collectors, street sweepers and gravediggers, also received a basic salary, but unlike women, they supposedly received bonuses.
"The Council’s senior Officers and Members are committed to dealing with the financial situation and when more information is available it will be shared," The Telegraph explained.
