Metropolitan Housing Trust believes it has found a solution to the thorny issue of how to pay its tenant board members without causing the government to withdraw any benefits they receive.
London-based MHT, which manages 13,100 homes across the South and the East Midlands, intends to pay its 15-strong board after consulting with its tenants.

However, in common with associations across England, it has been grappling with how to attract and retain tenant board members who may receive state benefits, without falling foul of the Department of Work and Pensions. Being offered a paid position may threaten entitlement to benefit.

Tony Shoults, chief executive of MHT, said: "Our legal advice from Trowers and Hamlins is that the board can delegate to the remuneration committee the decision whether any payment should be made to a board member."

As a result, no board member will be entitled to payment, with the matter to be conferred to the remuneration committee. Board members – including tenants who may be in receipt of state benefits – will not need to refuse payments under these circumstances.

"What is the point in having payment if it only acts as a deterrent to attracting tenant board members? I firmly believe in the right of tenants to be represented on our board and that is why we are pressing ahead with this proposal," Shoults added.

The DWP has previously said that any move to offer the option of payment to tenant board members who already receive state benefits – such as housing, unemployment or disability – would result in those benefits being cut.

It has refused to alter its hardline stance, despite pressure from former Housing Corporation chair Baroness Dean (HT 27 June, page 8), saying that any concession would require a complex change in the law.

Shoults said he had mentioned the idea "in passing" to the corporation, but would wait to see the DWP's reaction.

Source

Housing Today