MORE claims to a compensation fund for underpaid female council employees could put a squeeze on vital services, fears Reading’s Lib Dem leader.

Cllr Ricky Duveen issued the warning over council finances after revealing that there is “potential for lots more claims” to be lodged against Reading Borough Council over the next two years.

The Equal Pay Back Pay Provision fund, set up in 2011, has ballooned by £5m to £9.5m in just three years – even though the value of the reserve was predicted to be £6m this year and £7m in 2016. Critics say it is running wild at a time of widespread cutbacks following years of legal wrangling and interest charges.

Cllr Duveen told The Chronicle: “Although they’ve put £9.5m in and they’re increasing it by £1.2m a year that’s unlikely to be the final figure by a long way. That could end up with us making cutbacks which could have a serious impact on council services so it’s potentially a really big issue for the council. We’re already being pushed on all sides by budget cuts - we’re hard pressed to find a couple of million in the budget so if it goes up to £12m or more it’s going to be a nightmare.”

The fund was launched after an employment tribunal ruled the council had sexually discriminated against female employees including teaching assistants, carers and refuse workers by not paying them as much as male colleagues. Each case has to be dealt with on an individual basis and will involve an employment tribunal. The council implemented a new pay policy in 2010 and former employees have up to six years to lodge a claim.

Council spokesman Oscar Mortali stressed the council has an equal pay policy for all staff, in accordance with national and legal requirements. He added: “Making provision in the budget for possible historic equal pay claims is not something unique to Reading - it is something in common with many local authorities over a number of years and many councils are in the same position.

“When they arise, historic equal pay claims are dealt with on a case by case basis and as a consequence they do take some time to resolve. As a responsible local authority the council does need to make allowance and setting that contingency is a legitimate precaution on the part of the council.”