Controversial report on paying board members nears publication

The Housing Corporation consultation paper was delayed by the government earlier this year because former secretary of state Stephen Byers was unhappy with some of its details.

But the paper could appear after announcements expected to be made on next year's grant programme at the National Housing Federation's annual conference next week. The Office of the Deputy Prime Minister has promised it will not stand in the way of the report's publication, despite Byers' earlier opposition.

Payment will remain voluntary and is likely to be linked to high standards of performance.

The paper recommends a limit of £20,000-£25,000 for association chairs.

The number of people on the board could be cut, with more frequent meetings and a new responsibility to attend.

The payment issue is highly divisive. Lady Joyce Montgomery, chair of Manchester registered social landlord Harvest Housing Group, said the issue will "split the movement from top to bottom".

The ODPM has promised it will not stand in the way of the consultation paper’s publication

Allowing associations to choose whether to pay was no solution, she warned. "It will create a two-tier system.

"Some [tenants] will be attracted by the money but they are not worth having. Others who are dedicated to the cause and refuse payment will be second-rate citizens." Payment has found little support among Harvest's 60 board members, she said.

Norwich-based Anglia Housing Group, on the other hand, favours payment. Chair Roger Humber said it would have to be linked to performance standards.

He said: "The argument is unresolved because there is no 'killer' point either way."

National Housing Federation deputy chief executive James Tickell said: "Any move on payment must be used as a lever to secure further improvements in governance.