Common Fund

The Common Fund is how all parts of the Diocese collaborate financially to pay for local ministry. The Fund provides for parish ministry and support across the Diocese, irrespective of local financial position, in more than 500 churches working in our communities to enable Londoners to encounter the love of God in Christ.
The Fund brings together the contributions of local churches with diocesan income to provide and pay for stipendiary priests, clergy housing, support for parish clergy and congregations (like safeguarding, and children and youth), and to train the next generation of ministers.

Support flows especially to those working in our poorest communities, going through difficult financial times, or starting new mission initiatives. In the New Testament, we see both Christians pooling their resources (Acts 2) and better resourced churches supporting poorer/financially struggling churches very different from themselves (2 Corinthians 8 and 9) – all according to means and need.

This is why it’s called the Common Fund. We work together.

Common Fund contributions, along with money raised by the London Diocesan Fund, enable us together as a diocese, to pay for stipendiary priests, their housing, provide professional support for parishes, and to provide for training the next generation of parish clergy. Where a parish is unable to cover more than its benchmark cost figure (their London Ministry Cost benchmark), then their contribution is towards diocesan provision for their own ministry and mission. In other words, most Common Fund contributions are not a “giving away”, but a contribution towards our own costs.

If a parish can contribute more than the London Ministry Cost benchmark figure to Common Fund, then the additional amount goes towards supporting ministry in churches who are not able to contribute as fully. This generosity helps ensure that worshipping communities are present across the poorest parts of the diocese and helps sustain local church life through times of financial (often building-related) crisis, or where a new missional opportunity is being grasped. 85% of parishes, however, make contributions that go solely towards the cost of supporting their own parish.

Before the impact of the pandemic on local church finances, parish Common Fund contributions covered around 72% of diocesan General Fund expenditure, with other diocesan income (e.g. from investments) covering the rest. In 2024, parish contributions covered 63% of expenditure. Since 2020, and to support local churches in their financial recovery, the budget deficit (covered by sale of assets) has risen to just over £5m. Diocesan assets are a finite resource, and their sale also reduces the potential for ongoing income. Increasing income through growing parish contributions to the Common Fund is vital for the long-term sustainability of local church mission and ministry.

That certainly would not be fair, but churches are not asked for the same amount. Parishes receive a benchmark indicating the cost of paying for their parish priest (if they have one), the average cost of housing, parish support teams (such as safeguarding and property), and a share of the cost of training future priests. We all recognise, however, that two parishes with the same “London Ministry Cost” may have access to vastly different financial resources. For example, one may have a hall with a nursery paying rent, the other have no hall space at all; one may be in a very affluent area, another in one of the most deprived areas in the country. We therefore invite PCCs to consider their local context, resources, and commitments alongside that benchmark figure and in the light of a suggested figure from their archdeacon and make a context-based contribution. Each PCC is asked to consider a prayerfully wise and generous contribution in the light of the cost of ministry and their own local context. Each church is different and so their contribution to the Common Fund may well be too. We are grateful for our financial collaboration for the sake of our shared vision “for every Londoner to encounter the love of God in Christ”.

No two parishes minister in the same context. Some have historic resources, housing, or a well-equipped hall to rent out for regular income. Others have inherited churches with huge repair liabilities and urgent safety issues. Local communities across London are also hugely diverse, stretching from some of the wealthiest areas in the country, to some of the most economically deprived. The Common Fund helps make it possible to support the life of the church in every community, irrespective of financial resource. Parishes who may never be able to cover all the costs of a stipendiary priest, housing, and the support of diocesan teams, as well as churches going through temporary financial crisis, are supported without feeling they have will be left with a debt to pay. And the best resourced parishes are able to contribute not only their own “London Ministry Cost”, but also support parishes in very different contexts.

No two parishes are the same and there is no fixed formula for what a parish should contribute. Across the Church of England, the majority of parishes spend around 40% of their unrestricted income in Common Fund contributions. However, parishes with the highest incomes contribute lower percentages of their income but considerably over and above their costs. As a result the latest figures show parishes spending 34% of their unrestricted income in Common Fund contributions.

The London Ministry Cost benchmark (previously known as the “Parish Standard Cost”) is offered as an indicative figure showing the average cost of clergy and housing provision, parish support teams, and the training of future priests. It is offered as a benchmark against which PCCs can assess their contribution to Common Fund and gives a starting point for conversations towards 2026.

The 2026 London Ministry Cost calculation started with the budget for this year set and agreed by the Diocesan Bishop’s Council. Any likely additional costs for next year (such as inflation) have been added, and likely savings (such as dropping contributions to the National Church) are subtracted. These budgeted costs are then averaged across the Diocese to give the London Ministry Cost benchmark figure.

The London Diocesan Fund (LDF) publishes annual accounts available on the Charity Commission website: THE LONDON DIOCESAN FUND – 241083

The Diocesan Finance Committee, which is a sub-committee of the Diocesan Bishop’s Council, has governance oversight of the LDF budget. It is approved by the Bishop’s Council who are the LDF’s Trustees and presented to the Diocesan Synod in order to authorise the request for Common Fund contributions.

The London Ministry Cost benchmark takes the key components of the budget and represents a benchmark for local parishes to see how much the provision of key support (stipendiary clergy, housing, support) costs, on average. The London Ministry Cost in 2026, for a parish with one paid clergy person, one vicarage, and a share of support costs and costs of training the next generation of clergy, comes to £99,880. Nearly 70% of this cost relates to the provision of parish priests and their housing. Just over 10% is spent on training new clergy, and 14% on support costs. Just under 7% of the budget is spent on administration of the charity, which is a very low figure for a charity the size of the LDF.

The London Ministry Cost (previously known as the “Parish Standard Cost”) was held steady during the pandemic and in the years following, before increasing by an amount related to inflation in 2023 and 2024. The larger increase in 2025 (9.5%) followed a detailed reappraisal of the cost of spending and the impact of inflation which significantly increased maintenance and building costs. This year’s small drop in the London Ministry Cost benchmark comes as a result of careful attention to costs by the Diocese, and in anticipation of a likely elimination of diocesan contributions to the National Church Institutions.

The London Ministry Cost benchmark (before this year, known as the “Parish Standard Cost”) is shown below with year-to-year increases:

• 2019 – £82,800
• 2020, 2021 & 2022 – £85,200 (+2.9% on 2019)
• 2023 – £87,775 (+3% on 2022)
• 2024 – £91,300 (+4% on 2023)
• 2025 – £99,980 (+9.5% on 2024)
• 2026 – £99,880 (-0.1% on 2025)

We believe that we are likely not to be asked for a contribution to the National Church Institutions in 2026 owing to proposals currently being considered – unlike previous years where this made up ~2% of the cost benchmark figure. There is no figure, therefore, in the London Ministry Cost benchmark that represents a contribution to national costs.

Training curacies are a vital part of the formation of parish priests as they prepare for incumbency. Even if a parish does not have the opportunity to help train a curate, the shared financial contribution through the Common Fund ensures that there is a new generation of suitably trained priests ready to serve in parish roles in the decades to come. Your contribution will be helping accompany and train someone who might be your next priest.

The London Ministry Cost benchmark for a parish is based on how many stipends are paid and how many LDF properties are provided. Two stipendiary clergy will have costs of twice the clergy costs and two housing costs. Training and support costs are allocated per parish and not per stipend. These costs remain the same for all parishes.

We do not charge PCCs for work done to the vicarage. Instead, work (whether major like a new roof or heating system, or minor like clearing a drain) is provided “free at the point of use”. This figure in the London Ministry Cost is not a predicted “invoice for work to be done” but represents an average of the diocesan investment across all vicarages as we seek to provide good quality housing for parish priests and their households. Seen, as it is, as the “cost of housing provision”, the 2026 figure of just £1,915pcm represents exceptional value for money – certainly compared with rental or mortgage costs in most parts of our diocese where average rental costs are £45,000 and would range from £24,000 to £120,000 for a four-bedroom house.

The “support” figure in the London Ministry Cost benchmark represents the average cost of providing support for local churches through professional training and advice intended to support local ministry and mission. Parishes receive these services “free at the point of use” so that PCCs are not asked to choose between accessing vital advice or avoiding a large cost. They are provided accessible for all. Contributing each year to the Common Fund means that parishes will not need to face unexpected major bills to access these services.

We take the stipend saving across the diocese, predicted based on the average number of vacancies in a normal year, and spread that saving across the parishes. The London Ministry Cost (LMC) therefore already includes a reduction (in the clergy cost) for every parish, every year.

Bishops’ stipends and expenses, including their support staff, are paid for directly by the Church Commissioners and are not part of the London Ministry Cost figure. Housing for bishops other than the Bishop of London is provided directly by the diocese.

The support cost in the benchmark is worked out “per PCC” rather than per stipendiary post since each PCC can access the full range of support services offered, regardless of whether they have a full-time incumbent.

The London Diocesan Fund (LDF)budget sets aside just under 7% of its expenditure on charity administration, which is an exceptionally low figure compared to similar sized charities which regularly spend closer to 20% of their budget internally. The rest of the diocesan budget is entirely focused on supporting and resourcing the local parish, including the vast majority of LDF staff based at Causton Street and in Area offices. The diocesan team is dedicated to running as efficiently as possible to enable the focus to remain on supporting local churches in their mission and ministry. It is recognised to have one of the lowest proportions of support staff relative to stipendiary clergy in the Church of England.

The Common Fund makes possible the provision of stipendiary clergy, housing, and full diocesan support for local parishes, irrespective of whether they can contribute fully towards their benchmark costs or not. This makes possible parish ministry in our poorest communities, and when churches are going through financial crisis (such as when a building is failing), and when we are supporting a new mission opportunity. The lack of contribution from a neighbouring parish does not change the London Ministry Cost benchmark figure (which is based on diocesan costs, not on income) and each PCC is encouraged to look at its own resources and context, to help decide what is an appropriate contribution for themselves. Area Giving and Finance Advisers will work alongside area deans and archdeacons to help parishes consider how to maximise their financial resources through stewardship and income-generation.

Bishop’s Mission Order initiatives (known as BMOs) generally exist to explore the potential of new mission opportunities beyond the structure of parish boundaries. The cost of local BMO ministry is still supported by the Diocese, though in a more varied way than for parish churches. For example, where housing and stipend costs are being met locally, the diocesan team will still be providing support (for example, through the Safeguarding team). 

It is expected that BMOs (just like parish churches) will contribute as much of this cost through congregational giving as they are able, so that the Diocese is able to invest in new initiatives. A BMO should have a clear sense of how they see their contribution to Common Fund growing over the years as they are established and grow.

In deciding on a contribution for 2026, PCCs are invited to consider:

1. Your parish context – Each church’s resources and reserves, potential for giving and income, financial commitments already made, and the shape of a budget is unique.
2. A benchmark – The diocesan team estimates the costs in 2026 of paying for stipendiary ministry, housing, clergy training, and professional parish support. A London Ministry Cost (LMC) benchmark figure (see below) is calculated for a parish reflecting what is received. It is not a demand or invoice, but an indication of the investment planned by the diocese to which contributions are invited.
3. Our suggestion – The letter from your archdeacon and Area Giving and Finance Adviser explains a suggested contribution based on what they know of your context and of the wider needs of churches across the Area and Diocese. We hope this will be a helpful place to start.

PCCs are invited to make a pledge which is realistic, challenging, and generous

A contribution to the Common Fund is not, primarily, “giving money away”, but provides for a proportion (or, where possible, all) of the average cost of what the London Diocesan Fund is committing to pay towards the resourcing of the local church. Parish Common Fund contributions are not based on an invoice, or a compulsory payment, but made up of voluntary contributions towards that cost, and (for churches that can do more) towards supporting congregations who cannot do so.

If your contribution is at or below the benchmark which represents your parish’s own ‘cost figure’, then you aren’t, in fact, paying for anyone else – and nor is your benchmark figure any higher because another parish pays less than they might. We work closely with each parish to help them see the importance of contributing appropriately – though there can be local issues (not always widely known) why a parish may not be able to contribute what might seem right.

The London Diocesan Fund (LDF) will continue to underwrite the cost of resourcing the parish represented by your London Ministry Cost benchmark. However, this will mean that the resources of the LDF are stretched more thinly.

There is no “Reparations Fund” (despite some of the media coverage). Instead, the Church Commissioners, recognising the significant financial benefit, historically, to the CofE from slavery, has set aside £100m over 9 years (1% of the current endowment fund) as a new impact investment fund “to invest in a better and fairer future for all, particularly for communities affected by historic slavery.” The aspiration is that others will contribute to this investment fund, further enabling growth in the size and impact of the fund.  This does not impact, at all, the money that is available to local parishes.  Further information and FAQs available here.

The endowment that the Church Commissioners manage on behalf of the Church of England is an in-perpetuity endowment fund that provides funding to support the mission and ministry of the Church of England, including funding for parishes and dioceses in the poorest areas and initiatives to support church growth.  The Church Commissioners have committed to a 30% increase in funding for the Church between 2023-25, a total £1.2 billion of increased funding.

The endowment fund is intended to be ‘permanent’ – i.e. only the income is spent each year, not the capital. The £100 million impact and investment funding sits alongside expected total distributions by the Church Commissioners in support of the mission and ministry of the Church of England of £3.6 billion over nine years, representing about 3% of these total distributions.

Glebe was historically land and property given to a church to generate income towards the payment of clergy stipends and as an endowment fund (i.e. where the capital must be preserved). Income from Glebe is ringfenced and continues to be used for that purpose today.

The 1976 “Endowments and Glebe Measure”, which transferred most glebe property and endowments from parishes to their diocese, was intended to improve the management of these investments and to equalise the endowment across parishes irrespective of historic wealth. Even in 1976, the Second Church Estates Commissioner (the MP representing the CofE in parliament), in introducing the Measure, said of Glebe income: “…it is now not by any means enough to meet the whole stipends bill… and as time goes on the proportion which the laity have to provide is likely to increase.”.

Since 1976, clergy stipends have doubled in real terms, and standards of housing provided to priests and their families have improved very significantly. Despite the soaring cost of housing in London and of maintenance, housing is provided in every part of the diocese so that parish priests can live in the communities they serve.

Glebe is certainly an important source of income, but only a small proportion of what we need to find to sustain the life of our parishes. In fact, Glebe in the Diocese of London makes up just 6% of General Fund income received by the London Diocesan Fund. It is put entirely towards the payment of clergy stipends, just as intended, but covers just a small fraction of the budget for supporting local parish ministry and mission.

A Common Fund contribution is not a “gift to the Diocese”, separate from local parish ministry, but enables your church to contribute to the real financial cost of you having a stipendiary minister (if you do), clergy housing provided and maintained by the diocesan team, and free access to the full range of support from diocesan professional teams, such as safeguarding and property. The Common Fund also makes possible the selection and training of a new generation of ministers for local church ministry and mission. If a PCC disagrees with the direction that they feel the CofE is taking or want to make clear how they feel about the role of bishops in this, there are effective and public ways of doing so, while still contributing their own costs of ministry and mission.

Yes.  Please contact your Area Giving and Finance Adviser to let them know.

If your contribution is at or below your London Ministry Cost benchmark ‘cost figure’, then you aren’t, in fact, paying for anyone else – and nor is your benchmark figure any higher because another parish pays less than they might.  If you can contribute more than your London Ministry Cost, you might talk with your archdeacon about options available to you.

No, the London Ministry Cost is a cost figure, reflecting the planned budget for the London Diocesan Fund in the coming year – so what is planned to be spent. It is not affected by predicted income at all. What is affected is the deficit, which is the gap between the sum of Common Fund contributions and Diocesan income, and the cost of the budget for resourcing local church is shown in the deficit (a little over £5m in 2025). This deficit is bridged by the use of the London Diocesan Fund capital.

In 2024, Common Fund contributions were £260k lower than would have been expected prior to the disagreements about Living in Love & Faith out of a total of around £24m – so, a reduction of just over 1%.