Carney will receive the allowance as part of a generous package put together by the chancellor, George Osborne, to lure him from his current job in Toronto as boss of the Canadian central bank.
It was already known that Carney would be paid a salary of £480,000 and pension contributions worth £160,000. The revelation that he will gain a further £250,000 to house his wife and four children is likely to shock MPs and low income campaign groups concerned at wage inflation for top executives when wage rises are limited to 1% across the public sector.
A statement from the central bank's non-executive directors said that while Carney's remuneration appears high, it is similar to the £305,000 pay enjoyed by Sir Mervyn King because King's pension is worth another £300,000 a year.
"Although the next governor's salary of £480,000 is considerably higher than the salary of the current governor (£305,000) the cost to the Bank of enrolling him in the now closed pension scheme previously available to the governor and deputy governors would approximate to more than 100% of salary. This compares with the 30% cash allowance in lieu of pension to which the next governor will become entitled," it said.
Carney is already mired in controversy over his links to opposition MPs in Canada where it is alleged he held talks about becoming leader of the opposition Liberal party.
He was cleared after an internal review, but sparked warnings from former Liberal Democrat Treasury spokesman Lord Oakeshott and former City minister Lord Myners to be mindful of the independence of the Bank of England.
The Bank of England said the extra £250,000 accommodation fee would be taxed at the higher rate of 45%. He will also be denied child benefit and other allowances.
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