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Thousands of low-paid women, including cleaners and care workers, will see their hopes of better pay set back tomorrow when the equality watchdog drops its support for their legal battle.

The Equality and Human Rights Commission is withdrawing its backing for a court case that will determine whether local authorities have the right to delay paying women the same amount as men in order to avoid cutting the wages of male staff.

The commission’s sudden change of position is because of the “mess” on equal pay caused by the deluge of discrimination cases pursued by no-win, no-fee lawyers - even though it is accepted that many town halls have dragged their heels on equality.

The decision will come as a blow to thousands of low-paid women who have put their faith in antidiscrimination law and the courts to deliver better pay many years after their employers promised that they would be paid the same as men who do similar work. The claims are worth up to £3 billion.

Although the legal case will continue, £16,000 funding from the commission will cease and the women will have lost a highly respected backer.

Trevor Phillips, the chair of the commission, told The Times that to continue backing the case would be like “pouring petrol on to this legal forest fire” when what was needed was a “limited period” of time for employers and employees to reach a settlement.

Commission lawyers will stay involved in the case, but will argue that local authorities should be given a limited period to come up with a better deal for the women involved.

However, Stefan Cross, the lawyer representing the women, said that the commission was effectively changing sides. “These women were delighted that the commission was backing their claim. In moral terms they have been stabbed in the back. In legal terms I believe it is a breach of professional privilege and I will challenge it,” he said.

Asked if he was abandoning some of the lowest-paid women by withdrawing from the case, Mr Phillips said: “I really believe anybody who makes that argument is forgetting the people involved, and is perhaps more interested in who wins or loses an interesting courtroom battle, rather than the fact that there are many people for whom some real remuneration can make a difference to their lives, but it won’t if it comes in ten years’ time.”

At tomorrow’s hearing at the Royal Courts of Justice, the commission’s lawyers will tell the judge that they are no longer supporting the claim and want to act as an “intervenor” instead, a power recently given to the commission. In that role, they will argue for a limited transitional period of two to three years so that women’s pay can be raised in a negotiated settlement with employers without leading to job cuts or savage pay cuts for men.

Mr Phillips admitted that a negotiated agreement might mean “less cash for a small number, but it will mean some measure of justice for everyone, and faster”.

Costly claims

75,000

number of equal pay claims currently lodged

700,000

number of potential claimants

£3bn

estimated equal pay bill for town hall agreements

£5bn

total town hall pay bill with full six years’ back-pay

£5bn

estimated bill for NHS

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