Birmingham City Council has agreed to pay out more than £700 million in compensation to some of its female workers who were paid less than men for doing the same job.
The illegal practice was going on for years until the women took their employers to a tribunal. The council doesn't have the money to pay the claims so it's going to take out a huge loan which will take twenty years to pay off.
The council has warned that any services it does not have to provide by law might be cut.
Sir Albert Bore, Leader of Birmingham City Council, has said there is no other way than to look at decommissioning services in order to look for money to pay for the equal pay claims the council received today.
In addition, the council needs to save £600 million a year for the next five years.