Sheffield City Council to spend £51m to settle equal pay dispute with employees
It comes after claims women working for the authority weren't being treated equally
Last updated 23rd Sep 2025
Sheffield City Council has agreed to a £51m payout to settle a pay dispute with approximately 5,000 employees.
It comes after claims women working for the authority weren't being treated equally, with the GMB Union first calling for the issue to be solved in 2023.
The authority has now agreed to a £36m payout to be split between 3,600 employees in 260 different roles.
Separately £15m will be paid to non-teaching staff at schools, with funding set to come from the government.
The City Council says it will dip into its reserves in order to make the payout and won't be raising council tax.
A similar pay dispute was one of the reasons Birmingham City Council went bust in 2023.
Cllr Tom Hunt, Leader of Sheffield City Council, said: "This agreement reflects a shared commitment between the Council and Trade Unions to do the right thing for those whose work has historically been underpaid."
"Rather than allowing this issue to become drawn out, all parties have chosen to work together to deliver a fair and timely resolution.
"This agreement is a recognition of the vital contribution made by our employees across the organisation and a commitment to ensuring that such disparities are never repeated.
"Thank you to our trade union partners and to Council staff for their work to secure this agreement."
Desiree Johnston, GMB Senior Organiser, said: "Equal pay is not negotiable."
"This agreement proves that with determination and honest negotiation, we can deliver fairness quickly, without years of costly legal battles.
"Today is a victory for GMB members, for women workers, and for Sheffield — but our fight for equality goes on."