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Rising levels of equal pay discrimination cases currently largely confined to local authorities are set to hit the private sector hard in the future, the chair of the Equal Opportunities Commission (EOC) has warned.

Jenny Watson, who steps down at the EOC next month when it is merged into a wider equality body, said tribunals were already struggling to cope with the thousands of women taking on pay discrimination cases.

She blamed no-win no-fee lawyers for the trend, which according to the report saw a 155 per cent increase in case numbers in 2006, and said local authorities could end up paying out £3 billion as a result.

"No one should be under any illusions that this growth in individual cases will stop here," Ms Watson warned.

"When things move on in the public sector, no-win no-fee lawyers will be looking for new business and they are then likely to turn to the private sector."

The larger pay gap and lesser trade union representation mean the private sector is much more vulnerable, she explained, before admitting that she fears frustratingly slow progress is at the root of the problem.

"It is very depressing that another whole generation of girls will have to go through what we are going through," the Times newspaper quoted her as saying.