One quarter of Church of England dioceses are running deficits, according to a report that suggests parishes prepare for staff cuts that could affect pastoral care and worship. The report, commissioned to help churches to improve “efficiency and effectiveness”, found many dioceses have cashflow problems and that, on average, there is one lay person on the staff for every five clergy.
Although the Church raises about £1bn a year in donations to match is salary and pensions bill, the rising cost of those pensions means parishioners face handing over more money every year.
The study, conducted by accountancy firm Mazars and reported in The Times, found the 42 dioceses it examined had an income of £388 million in 2008 and spent £384 million, but while some are extremely wealthy, 14 are running deficits.
The biggest deficit in 2008 was recorded by the Diocese of Bath and Wells. It is more than £2.5m in the red and is having to sell historic assets in order to reduce the deficit.
The report suggests staffing levels are high among clergy and laity and that dioceses, as charities, are top heavy with trustees.
It asks: “What changes in working practice could reduce the proportion of lay staff and enable individual clergy to support a higher population? What would be the effect of such changes on parishes, dioceses, staff and clergy?”.
Paul Gibson, of Mazars, said staffing cuts are “not inevitable” but are “an option that needs to be thought through”.
SIC: TGUK