Hunt workers in the North-East say potential Government compensation of up to £50,000 each would not be enough to make them give up their jobs and homes.

The deal is said to be part of confidential plans being drawn up by ministerial advisers to help stave off pressure from countryside campaigners over the looming ban on fox-hunting.

Although an official Government spokesman yesterday denied any knowledge of such plans, national newspaper reports suggested payments could be offered to about 700 hunt employees who live in properties tied to hunts. But last night workers in the sport advised ministers to shelve any plans to buy off oppositions.

Huntsman Martin Claxton, who works for the Percy Hunt and lives in a cottage provided by the Duke of Northumberland's estate at Hulne Park, Alnwick, said such an attempt to cushion the impact of ending fox-hunting was doomed.

He shares the home with wife Valerie, 53, now his two children have gone on to university and taken up careers outside the area.

The community he lives in has been at the heart of a housing boom in the past three years in which the price of the average home has doubled. The 47-year-old, whose family have been an integral part of the Percy Hunt for more than 60 years, said: "The miners and shipyard workers of the North received no compensation, just redundancies, so why should we?

"The average hunt employee's wage can be anything from £8,000 to £14,000 a year, with accommodation thrown in. Even at three-and-a- half times salary and a £50,000 windfall, it's not enough to buy a house around here.

"Many huntsmen like myself have families, and that would require finding a three or four-bedroom home. Even a former council house in Alnwick now costs well in excess of £100,000, so where could we go if our children were still of school age? A lot of us don't do this for the money, it's a way of life more than a job." Ministers have previously said there will be no compensation for hunt staff and there is no provision in the Hunting Bill for it - but a separate Treasury order could be presented to Parliament.

Labour backbenchers in poor rural constituencies have been lobbying for the compensation plan.

Belsay farmer and Countryside Alliance regional chairman Richard Dodd said the offer "beggared belief".

"Yes, compensation should be paid, but are they going to pay the farmers, saddlers, farriers and other industries like pubs and hotels which will all suffer?" he said.

"They're making mischief. At the end of the day, it's not about the price the Government puts on hunting, because hunting is not for sale."

Last night, a Defra spokeswoman said: "There is no foundation to claims of compensation being paid to these workers."