A last-minute bid by the Housing Corporation to persuade the government not to cut housing benefits to paid association board members has failed.
Corporation chair Baroness Dean wrote to work and pensions secretary Andrew Smith on 29 April suggesting that income from civic duties, such as sitting on association boards, should be disregarded when calculating housing benefit (HT 13 June, page 10).

But the Department for Work and Pensions has rejected the idea on the basis that any concession would require a complicated change in the law. A corporation spokeswoman said the organisation would "continue pressing for a change in the law".

It is feared that tenants will leave paid boards if they lose housing benefit. Tenants will still lose benefit if they turn down board payment that is offered.

Despite the setback, the corporation looks set to press ahead with allowing housing associations to pay their board members.

The corporation's board met on Tuesday to discuss the matter and an official announcement is expected in the next few weeks.

The other sticking point had been whether exempt charities – associations that are charities but regulated by the corporation rather than the Charity Commission – had to follow commission guidance or corporation rules on payment.

Exempt charities will now have to follow corporation rules, but registered charities – associations regulated by the Charity Commission – will have to get permission to pay their board members from both bodies.

Source

Housing Today