A third of housing associations are now paying people to sit on their boards - and the move has been hailed as having an "overwhelmingly positive" impact on governance, according to a new guide.

The National Housing Federation's (NHF) updated Board Member Pay - Principles and Practicalities - found 35% of associations now paid their board members, but the figure increased significantly amongst the larger more complex social landlords.

The ability to pay housing association board members in England was introduced in 2003 and six years on the move has been praised by many social landlords for improving the way they are run.

The revised guide Board Member Pay – Principles and Practicalities (2009) - examines how trends have changed and the impact they have had on governance. It was written for the Federation by Tribal Consulting supported by Trowers and Hamlins Solicitors.

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It includes results of a comprehensive survey of the extent to which housing associations have taken up the option to pay board members, the arguments for and against paying, and examines the business cases for paying and establishing acceptable amounts.

Lucy Ferman, of Tribal Consulting and Principal Author of the guide, said: "The research conducted for this publication suggests that some 35% of housing associations are now paying all or some of their board members and that this figure increases steadily as does the size and complexity of organisations.

"Over 60% of those with an annual turnover in excess of £25m now pay and this rises to 94% of those turning over in excess of £100m.

"What is more, those that now pay are overwhelmingly positive about the impact that payment has had on governance.

"However, it should not go unnoticed that there remain many associations, including some large and high profile organisations, who continue to deliver effective governance without paying their board members and who see no need to do so. The traditional voluntary ethos remains alive and well."

(CD/JM)