I don't back board pay, says Corporation's new chairman

The new chairman of the Housing Corporation has admitted that he does not support one of the quango's most controversial policies.

Peter Dixon, who takes over from Baroness Dean in October, said he does not believe housing associations should pay their board members.

The corporation ruled that associations could pay board members, if they presented a "robust business case" for doing so, last month (HT 4 July, page 7).

Dixon said his stance was "no secret". As chair of the UCL Hospital Trust, he has expressed his opposition to paying board members in the healthcare sector. He added: "It would be daft of me to try to deny that."

However, asked if he would consider rescinding the policy, Dixon said: "I don't think that would be remotely appropriate.

"It's been through a long consultation process, a decision has been reached and that's the decision.

"It is going to be important that the organisations that do decide to pay are prepared to produce the suitably robust business case which the Housing Corporation is suggesting, and that the payments are commensurate with what they get out of the board members."

A senior housing professional who did not wish to be named said it was "stunning" that the new chairman did not agree with such a controversial policy. He said Dixon's position could cause the chairman "a lot of trouble".

Any tenant board members who are paid under the new policy will have their welfare benefits docked, despite efforts by Baroness Dean to persuade the Department for Work and Pensions to change its rules (HT 27 June, page 8).

Dixon said: "It's difficult to have a general public service exemption in respect of housing benefit so I just don't know how one gets round that. Dean had a go at it and I'm aware of that and I think it remains an issue."

Dixon has also given the strongest hint yet that the Housing Corporation will be looking to regulate private developers if they are given social housing grant (HT 25 July, page 7).

He said: "There is no such thing as a free lunch, shall we say.

"If it does become government policy, I'm sure there will be appropriate strings attached to it. I think the strings might have something to do with us."

Dixon also warned that housing associations that move into neighbourhood management must not put core services at risk. His comment came as deputy prime minister John Prescott announced round two of the neighbourhood management pathfinder initiative.

Registered social landlords can bid to take the lead in 10 new pathfinders, which will share a pot of £21m. RSLs have to put a bid in to their regional government office by 19 September.