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Local Government: Equal Pay

Volume 463: debated on Thursday 19 July 2007

To ask the Secretary of State for Communities and Local Government how much central funding has been given to local authorities in the last 10 years to assist them to meet the cost of equal pay. (150006)

Local authorities are responsible for decisions on local pay issues, including equal pay, and they are expected to manage them in an affordable manner. Most central funding is provided through general grant and there has been no specific grant earmarked for equal pay. Central Government funding for local government has increased by 39 per cent. in real terms since 1997.

Approvals for capitalisation directions for equal pay, which permit authorities to borrow or use capital receipts to fund back-pay, are set out as follows:

Funds (£)

2003-04

4,500,000

2004-05

41,048,635

2005-06

50,089,433

2006-07

160,501,817

Following representations made by the Local Government Association and others, we have introduced a quicker process for equal pay capitalisation this year, and are considering requests in the current financial year.