Accommodation allowance for Carney

Mark CarneyMark Carney, the incoming Governor of the Bank of England, will get a £250,000 accommodation allowance when he takes up the post in July of next year.

Mr Carney is relocating from Canada, where he is currently governor of the country's central bank.

The accommodation allowance, which will be subject to tax and social security contributions, is on top of his £480,000 salary, well above the £305,000 pay level of the current governor, Sir Mervyn King.

The Bank said the higher salary was to compensate for his not being able to join the closed pension scheme.

It said the cost of enrolling him in the scheme would have been more than 100% of his salary. Instead he is receiving a 30% cash allowance in lieu of pension.

Mr Carney, 47, is the first non-British citizen to be appointed to the top job at the BoE. The job is considered to be one of the most powerful in Britain with the BoE taking on extra responsibilities for banking supervision as part of an overhaul of financial regulation following the economic crisis.

Prior to taking up the role of governor of the Bank of Canada, Mr Carney spent 13 years at investment banking giant Goldman Sachs, a firm now synonymous with excessive pay and risky banking.
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