Commission states trustees can be paid

After a 12-month consultation, the Charities Commission has decided there are some circumstances when it may be in the best interest of the organisation to pay trustees.

The policy could have significant implications for charitable registered social landlords and could influence the Housing Corporation's deliberations on rewards for charitable RSL board members.

If the guidance is applied, board members could receive up to £5,000 per year in payment.

The figure is broadly in line with the amount paid to NHS trust board members.

Charity Commissioner Julia Unwin said: "The commission recognises that the economic position of some people may make it impossible for them to act as trustees. In these circumstances, we may be able to show a greater willingness to allow payment where a case has been made to show its necessity."

The Housing Corporation is consulting with charitable and non-charitable RSLs on the issue.

National Housing Federation assistant chief executive James Tickell said the ruling set a yardstick for further deliberations.

"This sets out a principle and the Housing Corporation needs to have a regard to this in discussing payments to board members of RSLs."

Mike Morris, chief executive of the William Sutton trust, which already pays a £2,500 annual stipend to its trustees, said: "The new guidance is logical and sensible, particularly in recognising that organisations of different sizes will need to take different approaches. Payment is valuable in reinforcing the obligation and contract on both sizes."