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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.
Birmingham City Council today said it's received equal pay claims totalling £757 million from women who were paid less than men for doing the same job.
It also revealed that it will be receiving more claims following a court ruling which will allow women who believed they were discriminated against to lodge claims until 2018.
The council doesn't have the money to pay the £757 million in claims and needs to borrow it.
The interest payments will amount to £75 million a year by 2015/16.
Sir Albert Bore, the leader of the city council said they're considering cutting services it doesn't have to provide by law.
The council has to pay these claims - in addition to saving £600 million a year for the next five years.