Dear <<First Name>>

Additional stipend increase & Clergy Hardship grants

I am pleased to be writing to you to say that, quite exceptionally, Bishop’s Council has decided that there should be an additional increase in stipend on 1 September 2022.

We are very aware that inflation is now at levels not seen for several decades, and that this will have a significant effect on clergy household finances. 

The measures taken earlier this year by Government in providing a rebate to properties in Council Tax bands A to D did not have any material effect in this diocese given the value of properties, but last month’s announcement of a reduction of at least £400 for all households will of course be of benefit. 

Grants available within the Diocese of Oxford

It is good that the national Church is providing support this year for clergy and certain others who are experiencing hardship due to the cost of living crisis. 

Details are available here of how we are operating this scheme within the Diocese of Oxford. Please do draw on this and encourage others eligible to do so.

Additional stipend increase

Clergy stipend increases awarded by dioceses this year and proposed for next year are varying more than is usually the case as dioceses try to discern what is right with an eye also to affordability. 

In this diocese, we are aware of having almost the highest level of stipends (only one diocese is above us) and of the desirability of the stipend range not varying too much nationally. We are also aware of the challenge in many parishes and deaneries of increasing parish share when numbers in many churches have reduced post-pandemic. Clergy stipends form the largest single element of the diocesan budget and so historically the level of stipend increase has been the same as the level of parish share increase.

With all this in mind, Bishop’s Council has decided to apply the very welcome recently announced saving from the reduction in the cost of the clergy pension scheme both to reduce the level of parish share requested of each deanery for next year (which will now range from -2% to +2%, rather than from 0 to +4%) and to enable a slightly higher than budgeted stipend increase for 2022 and 2023. Please be reassured that the reduction in the cost of the clergy pension scheme does not in any way affect the benefit levels being accrued or paid.

I am therefore pleased to be able to advise you that the level of stipend for stipends set by the DBF, which were increased by 2% on 1 April 2022, will increase by a further 1% on 1 September 2022. This means that the new levels will be as follows:

Incumbents and those of incumbent status: £28,807
Training Curates: £26,445
Team Rectors: £29,307 [for those in receipt]
Area Deans: £29,807

All other grants and allowances remain as advised in my letter on 22 February 2022.

As regards mileage allowances, it is currently the intention to keep the recommended level at the maximum HMRC level, but we (and other dioceses) are keeping this under review as fuel prices continue to increase. 

Bishop’s Council has yet to decide on the level of stipend increase from 1 April 2023, but it may help you to know that the 2023 Budget allows for a 3% increase in clergy stipends next April (as well as the 1% being paid this September).

Thank you for your understanding that it is not possible to fully match in stipend increases the very high levels of inflation currently being experienced. We hope you will feel that these steps taken together go some way towards recognising the effect on clergy income; if you are nonetheless experiencing financial difficulty I would strongly encourage you not to hesitate in speaking confidentially to your Archdeacon who may have access to additional hardship funds where needed.

With kind regards,


 
Mark Humphriss
Diocesan Secretary