The Common Fund allows us to put a vicar in nearly every parish.
The Common Fund is about every parish seeing itself as part of the big picture and giving generously and sacrificially.
The Common Fund pays for the church’s mission and ministry across the Diocese of London and allows us to put a vicar in nearly every parish.  This means parishes can help fund work and worship in places where people contribute to the big picture in amazing ways but do not have the financial resources to meet the cost of ministry.  It is how we express being one body by doing more together than we could ever do alone.
The Common Fund is about every parish seeing itself as part of the big picture and giving generously and sacrificially.
The Diocese of London is big: it stretches from Heathrow in the west all the way up to the Olympic site in the East and from central London right out to Barnet and Enfield. Â We represent over 400 parishes, serving over six million people.
We can be present in every community because of the work our parishes do – and not just in bricks and mortar but in people.
The Common Fund pays clergy wages, their pension, their housing, their training and it even pays for the training of a parish’s next vicar.
Common Fund is money given by congregations in every parish in the Diocese of London to provide and support clergy, and to further God’s work in every parish, across London.  That is why our contributions are called the ‘Common Fund’; they are made by everyone, for everyone.
The Church of England receives no money from the state for mission or ministry.
We have the privilege of sharing in mission and ministry through Common Fund:
In 2022, we estimate that we will need about £35 million to sustain the Church of England in London.  Roughly 75% of this is needed simply to house and pay the clergy, and to provide for their pensions.  The Diocese of London is fortunate in that it has some resources from ‘yesterday’s congregations’ which are invested in property and funds.  The income is used to help pay the costs of keeping clergy in parishes, and to contribute towards the wider work of the Church of England.
Briefly, money comes in from:
and the Diocese of London spends it on:
The basic running costs of the parish; heating, lighting, insurance, repairs, services etc; are paid for by the congregation.  On top of this, supporting one full-time priest in a parish and contributing a fair share of the costs of other activities is estimated to amount to around £87,775 per parish in 2023.  This can be divided into three roughly equal parts:
Based on a parish with one cleric and one house.
| 2021 | 2022 | 2023 | 2024 | |
| Stipends | 27,600 | 27,900 | 28,870 | 30,680 |
| National Insurance | 2,300 | 2,325 | 2,550 | 2,980 |
| Pension Contributions | 10,000 | 10,000 | 8,730 | 7,480 |
| Resettlement Grants | 900 | 975 | 995 | 1,040 |
| Council Tax | 2,200 | 2,310 | 2,790 | 2,970 |
| Housing | 12,700 | 13,040 | 13,330 | 14,120 |
| Training for Clergy and Ordinands (trainees) | 12,500 | 12,400 | 12,830 | 13,470 |
| Safeguarding | 900 | 1,200 | 1,240 | 1,300 |
| Central Diocesan Support | 5,000 | 4,900 | 5,070 | 5,320 |
| Parish & Area Support | 8,800 | 7,850 | 9,030 | 9,480 |
| National Church Support Activities | 4,600 | 4,600 | 4,760 | 5,000 |
| Vacancies Saving | -2,300 | -2,300 | -2,420 | -2,540 |
| Total (Parish Standard Cost) | 85,200 | 85,200 | 87,775 | 91,300 |
Who decides how much a parish contributes?
The Parochial Church Council (PCC) in each parish decides how much to give.
Each parish is told the costs of keeping its clergy and its share of other costs.  The PCC makes an offer based on its knowledge of its own finances and diocesan finances.  The generous offer reflects the parish’s ability to give as well as how much it costs to run the parish.
Not all parishes can give this full amount, so the generosity of past generations supports parishes that cannot meet their full costs. Â However, this inheritance is limited, so for the Church to be present across the whole of London, the less well-off parishes also depend on generous, committed and sacrificial giving of their own and from better-off parishes.
In past years when contributions to the Common Fund have not been sufficient, there have been reductions in clergy posts and lay posts. Â In some parishes, self-supporting clergy have been appointed, or two parishes have been put together.
2021 has been an exceptionally difficult year for us all as we have together responded to the Covid-19 pandemic. Â PCCs have faced challenges on many fronts including organising worship, serving our communities, and managing parish finances. Â We are extremely grateful to all parishes for their ongoing generosity in supporting the work of our ministry in London through your continued Common Fund contributions.
During the current pandemic the Diocese of London is supporting parishes through the challenges of Covid-19. Â The aim is to ensure that we can pick up from a good base when these difficulties subside.
The Diocese of London is expecting to run at a deficit in 2020 and 2021 and will draw on reserves to fund the difference in the short term. In addition, the level of Parish Standard Cost is being controlled by using property assets effectively to support mission and ministry and by controlling costs in view of the current financial climate.
Thankfully, it has been possible to balance the books in recent years, and with good governance and faithful generosity from congregations it is hoped to continue that pattern in the future to grow God’s kingdom across the Diocese of London and beyond.
