Church finances strain as attendance and donations continue to fall
A report by Canon Robin Gill and Professor John Craven warns that the Church of England faces serious financial strain, linking it to falling attendance and donations, growing administration, and spending on environmental and social justice initiatives. The authors say the Church should prioritise parish communities and clergy, and argue that declining local support risks making its finances and attendance unsustainable.
The Church has a target to reach net zero by 2030 and set aside £190 million for environmental renovations, though it has acknowledged it will miss the deadline. Its £100 million Project Spire fund aims to address historical links to the transatlantic slave trade. The report says 37 of 42 dioceses now run deficits, compared with 18 in 2019, while diocesan staff numbers have risen from 1,300 in 2005 to 2,300; it proposes reducing dioceses and bishops, cutting administration and requiring independent reports on project spending.
In short
- Report warns the Church of England faces worsening financial pressures.
- 37 of 42 dioceses are in deficit, up from 18 in 2019.
- Authors call for fewer dioceses and less administration.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The Church has a responsibility to address climate change and the lasting effects of its historical links to slavery, and dedicated investment can support that work while making church buildings more sustainable. These initiatives may also reflect the values of congregations and help the Church serve wider communities; financial pressure is a reason to scrutinise their costs and results, not necessarily to abandon them.
The case against
With most dioceses now in deficit and attendance and donations falling, the Church must ensure that spending supports the communities and clergy on which its future depends. Those who favour reprioritising argue that environmental and social justice programmes, alongside a growing administrative structure, risk diverting limited funds from parish life; reducing overheads and requiring independent scrutiny could improve accountability and long-term sustainability.
Explained simply
The Church of England is organised into local parishes, grouped into dioceses led by bishops. Parish churches rely on worshippers’ donations and other income, while dioceses and national bodies help fund clergy, buildings and wider church work.
Attendance and giving have declined, while the Church has also expanded its administrative staff and committed money to projects including environmental improvements and work addressing its historic links to slavery. These demands make it harder to balance the books as local support falls.
The debate is about how the Church should use its limited funds and organise itself. Decisions affect the resources available to parish communities and clergy, as well as the Church’s ability to meet its wider commitments.
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Originally published by Daily Mail as “Church of England is facing ‘financial disaster’ because of Net Zero targets and its plan to spend £100m on slavery reparations, report warns”.