I have been asked to advise on what are the benefit implications of a benefit claimant being appointed to a voluntary governing board - which in old money I would call a quango. Members of this board will receive a lump sum payment of £5000 every year.

Now it's simple enough that - broadly speaking - this will be counted for means tested benefits (in this case Pension Credit & Housing Benefit). I'm expecting it to be counted as income rather than capital but I have not yet got confirmation.

My problem is with the implications of this. The organisation is intending to make up any shortfall of board members, including cuts in benefits.

Taking this to its logical conclusion I cannot see any way that a board member can claim means tested benefits at all because refunding losses on the taper will in the end take them up to the benefit limit.

This appears to be an absurd position for public policy. Persons of independent means can join quangos and recive full benefit of any fees/honourarium (or whatever you call it). But anyone claiming means tested benefits cannot do it unless the quango is able and willing to buy out all of means tested benefits.

I did wonder if anyone is aware of any arrangements whereby persons on means tested benefits can remain on benefits in order to contribute to important public policy?

It's not much help to you but we have repeatedly raised this anomoly with DWP and got nowhere with it to date.

To give more information the board concerned is for a Housing Association. It is now a regulatory requirement that such boards have at least one member who is a tenant. Many Housing associations now pay their board members.

Current stats show 82% of tenants are on at least some means tested benefits.

I therefore think it is more than an anomoly - it creates a massive barrier to participation in public office - purely based on monetary means (i.e. - there is no barrier to the better off).