Croydon Council could pay out more than £1.5 million if it loses a legal battle over the closure of a youth advice service.

Unison, the largest public sector union, is challenging six councils, including Croydon, and the Centre for British Teachers’ Education Trust (CfBT) after a contract with Connexions, which offers youth employment advice service, was cancelled earlier this year.

Unison is claiming staff were left without redundancy or notice pay and has launched a bid for compensation for 58 members who were sacked.

A further 34 are bringing their own claims.

Croydon Council has set aside £146,000 to fight their case, but have been warned they could have to pay out up to £1.746 should they lose.

The Connexions partnership on behalf of Kingston, Sutton, Richmond, Croydon and Merton started in 2001, but the Government announced it would cut funding from 2012 and return careers advice to schools.