- Mr Carney, 47, will replace Sir Mervyn King as the Governor in July
- His total annual package will be £874,000 - 33 times the national average
- Mr Carney is already earning £175,000 a year more than his predecessor
- He is the first foreign appointment to the role and will relocate from Canada
The new governor of the Bank of England will be given a housing allowance of £250,000 a year, pushing his total annual earnings towards £1million.
Canadian Mark Carney, who takes over from Sir Mervyn King on July 1, will get the extra cash on top of pay and perks worth £624,000.
It takes his total annual package before tax to £874,000 – six times more than the £142,500 Prime Minister David Cameron is paid and 33 times the national average of £26,000 a year.
Extra income: Canadian Mark Carney will receive
£250,000 on top of his £480,000 salary for accommodation when he becomes
Governor of the Bank of England
The one-off cost of moving Mr Carney and his family to Britain has yet to be finalised and will also be covered by the taxpayer.
The housing allowance – agreed in secret before Mr Carney was appointed last month but only made public yesterday – will contribute towards a five-bedroom home for his wife and four young daughters in central London.
The deal was a crucial part of the effort to tempt the 47-year-old to leave his job as governor of the Bank of Canada and move his family to Britain.
Mr Carney, hailed as ‘the outstanding central banker of his generation’ by George Osborne, currently lives in a spacious family home near the Bank of Canada headquarters in Ottawa.
But the housing deal – worth £1.25million over his five years as governor and enough to cover rent of £2,500 a week after tax – will alarm MPs when many households are struggling to make ends meet. The Canadian – the first foreigner to run the Bank of England since it was set up in 1694 – insisted on serving for just five years instead of eight and will earn far more than Sir Mervyn’s £305,000 a year.
Outgoing: Sir Mervyn King, who will stand down as Governor in June next year, is on a considerably lower salary than Mr Carney
It is also thought that Mr Carney has political ambitions and even thought about running for Prime Minister in his homeland before accepting the Bank of England job.
The Canadian now faces a showdown with MPs on the Treasury Select Committee in February in what will be his first public outing in Britain since his appointment.
‘Colleagues will want to ask about every aspect of his appointment including, no doubt, remuneration,’ said Andrew Tyrie, chairman of the powerful committee of MPs.
Adam Posen, a former member of the monetary policy committee at the Bank of England, has warned that Mr Carney’s generous pay and perks means he could be seen as a ‘globe- trotting corporate free agent’.
Mark Carney has been appointed as the next governor of the Bank of England in Threadneedle Street, London
Mr Carney will get a basic salary of £480,000, a cash allowance in lieu of pension of £144,000, and the £250,000 a year housing allowance – a total of £874,000.
John Mann, a Labour MP on the Treasury Select Committee, said: ‘I think even by MPs’ standards it is a remarkable amount of money to live on in London.
‘It is just comical that level of money.’
Mr Carney, who faces a UK tax bill of around £400,000 a year, has a British wife and intends to apply for British citizenship.
The pay of fellow Canadian Moya Greene, who runs Royal Mail and last year earned a total package worth £1.1million, has also caused outrage.
Although she gets perks such as two return flights to Canada each year, she does not get a housing allowance.
WHAT CAN MR CARNEY GET FOR £250,000 A YEAR?
After tax, Mark Carney will have a monthly housing allowance of £11,500 for his wife and four daughters. Here are some of the London properties he could rent:
Mr Carney could set up home in this beautiful seven-bedroom, regency period house and still have £2,000 each month to spare.
The Grade II listed townhouse, which costs £9,500 a month, is located in leafy Blackheath, south east London, and even has its own swimming pool.
For just slightly over budget
(£11,917pcm), the Carneys could live in the heart of London in this
magnificent five bedroom house just a stone’s throw from Parliament
Square, Buckingham Palace and St. James’ Park.
If the Carney family fancy
rubbing shoulders with the rich and famous, they could rent this
five-bed apartment in trendy St John’s Wood - a popular haunt of
celebrities including Sir Paul McCartney and Kate Moss.
Furthermore, the property, which costs £10,834-a-month, is located on Abbey Road, close to the studios and zebra crossing made famous by the Beatles.
For £8,667-a-month, Mr Carney
could opt for this five-bed family home, located close to picturesque
Hampstead Heath, one of the most sought-after areas of London.
If Mr Carney wants to live
within walking distance of the Bank of England, then he could chose this
£10,000-a-month 18th century townhouse, which comes complete with a
retractable glass room and contemporary internal ‘living wall’ of
plants.
Mr Carney could set up home in this beautiful seven-bedroom, regency period house and still have £2,000 each month to spare.
The Grade II listed townhouse, which costs £9,500 a month, is located in leafy Blackheath, south east London, and even has its own swimming pool.
Affordable: This seven bedroom home in Blackheath is well within his budget
Luxurious: A bit over budget, but it's walking distance to Parliament
Furthermore, the property, which costs £10,834-a-month, is located on Abbey Road, close to the studios and zebra crossing made famous by the Beatles.
Plush: This pad is on Abbey Road, of Beatles album cover fame
Location: This five bedroom house is in sought-after Beaumont Gardens in Hampstead
Desirable: Mr Carney might like this 18th century townhouse in Queen Anne's Gate
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