To ask the Secretary of State for Children, Schools and Families with reference to page 28 of the Department for Education and Skills Resource Accounts 2001-02, for what reason Mr. Peter Housden received an interest-free housing loan; and for how many years he received such a loan from the Department for Education and Skills. (259582)

The loan was provided in 2002 when Mr. Housden worked for the Department for Education and Skills as part of a relocation package from Nottingham to London. The loan transferred to Communities and Local Government when Mr. Housden was appointed as Permanent Secretary on 24 October 2005.

Packages of this kind are commonplace in many major organisations and are a key part of recruiting the very best candidates. The loan is counted as taxable income and is being paid back over a 10-year period. Rules governing loans are detailed in the Civil Service Code.