Outgoing Bank of Canada governor Mark Carney will get a housing allowance of just over $400,000 next year to help him cope with London's high living costs when he takes over as Bank of England governor July 1.

The housing funds, designed to let Carney have the same standard of housing for his family as they currently have in Ottawa, will be on top of Carney's already reported regular salary of $770,400 (£480,000) and cash in lieu of pension of  $231,120 (£144,000) — just over $1 million altogether.

So along with the housing allowance, Carney's total compensation package will be about $1.4 million 

Carney's salary as Bank of Canada governor is $431,800 to $507,900, according to its website.

The London compensation arrangement is considerably higher than the one enjoyed by the current Bank of England governor, Sir Mervyn King, who earns a salary of $489,525 (£305,000) and also gets a pension allowance.

Extra responsibility

The Bank of England says the higher compensation reflects, in part, the extra responsibility Carney will have as he assumes more bank regulation duties. Carney will also not be eligible for a pension. 

"The non-executive directors ... confirmed their agreement to and support for an annual accommodation allowance of £250,000 ($402,000) for the next governor and his family which had been offered to him prior to his appointment," said a statement released Wednesday by the Bank of England.

It says the housing allowance will be subject to tax at 45 per cent. 

Carney's appointment last month was an occasion for British Finance Minister George Osborne to declare that Carney was "quite simply the best, most experienced and most qualified person in the world to do the job. He has done a brilliant job for the Canadian economy."