Money Matters 2010-2011
MONEY MATTERS – with help from Dr Mark Hodge (Ministry Division Grants) – Tel: 020 7898 1396 Email: mark.hodge@c-of-e.org.uk
AOCM covers finances from pre-selection to curacy and takes up issues of funding and resources on behalf of ordinands set against wider changes in student finance. Readers are from a diversity of financial positions. Some will have had a salary, home of their own and lifestyle to match and be adapting to a student budget. Others have been living on a grant or low income and may begin training with few resources, even debts. Diocesan provision, resources for single or married ordinands and whether your spouse is working all add to the diversity of funding.
If finances are tight or you need to raise funds for placements there is a range of charities and trusts to contact for additional financial assistance. The handbook and the website include details of grant-making trusts, their conditions and addresses. Diocesan provision is becoming more uniform; AOCM aims to be able to share good practice in this area.
Funding of Theological Colleges and Regional Courses:
Block grants for tuition costs are now made by Ministry Division to institutions and courses calculated by the number of sponsored ordinands attending each institution. Grants to ordinands are now paid by BACS direct to students not via the college or course. For college students this grant includes the college maintenance fees, to be paid on to the college.
Local Education Authority GRANTS
LEAs no longer make discretionary awards for ministerial training. It is only appropriate to apply to the LEA if you are undertaking a first College degree course and have not previously received LEA assistance. The administration of LEA grants is in the process of being centralized and application should be made through the government’s web-site at www.direct.gov.uk.
Support under the Disability Discrimination Act
If you have a disability eg restricted sight, hearing or mobility or have dyslexia you are entitled to support to assist with accessing your course. This is often government funded and accessed through your training institution. You will be assessed and appropriate provision made, which can include grants for adapted equipment and additional tutorial support. Where support is required from Central Church Funds please contact the Grants Officer at the Ministry Division.
MINISTRY DIVISION GRANTS
Residential training – Once selected you will receive a form to apply for a grant from Central Church Funds to complete when your college place is confirmed and send to the Ministry Division. College tuition fees are paid in full; any fees grant made from another source must be used to reimburse Ministry Division. A personal contribution towards maintenance may be assessed where students are in receipt of an unearned income from savings and investments over £1,175 a year.
Ministry Division Allowances – These cover, in addition to college tuition and maintenance fees, personal expenses, books, common room subs, and travel if living over 20 miles from college. The standard personal allowance is currently £1,371 pa; short vacation allowance £386 pa and long vacation allowance £434 pa.
Although primary responsibility for the support of the families of married ordinands rests with the sponsoring diocese, Ministry Division contributes to these costs through family maintenance grants made from the Church Times TAP Fund. To apply for these grants a copy of the agreed estimated budget should be submitted to the Grants Office at the Ministry Division.
Non-residential training – Ministry Division pays Course fees in full in all cases; plus book grants of up to £255 per annum and travel costs, which are assessed on a scale related to income and commitments.
OLM Schemes are funded by a Ministry Division contribution towards their running costs. The diocese is responsible for funding students’ costs, in some cases by arrangement between the diocese and the parish.
DIOCESAN GRANTS
Diocesan Family Support – Families of ordinands in residential training are supported mainly by the sponsoring diocese. Costs are distributed between dioceses by a pooling of resources. Provision for housing is made within limits set for individual Colleges ranging from £8,475 to £10,855. In addition family support is provided according to the following guidelines:
| Family Type | Couple | Lone parent | Child O11 | Child U11 |
| Recommended
Diocesan support |
£9,570 |
£6,145 |
£2,165 |
£1,425 |
Plus a diocesan grant for married ordinands’ removal expenses to college.
DEDUCTIONS
The recommended figures in the table above, plus housing costs is the overall total figure that you will receive. The following, where applicable, are deducted, with the diocese providing the shortfall:
RECOMMENDED FIGURE – Less:
* Ministry Division/LEA/Maintenance Contribution
* State Benefits (incl. Child Benefit);
* Child Tax Credit – 75% after the first £2,135
* Earned income above £1,070 pa;
* Unearned income at the discretion of the diocese
* Income from Charities above £445
* 75% of Working Partners’ Income after the first £2,135
Diocesan support for single students:
This remains an area of concern in which AOCM has campaigned for several years. Grants payable by Ministry Division are designed to fund ordinands during the academic year but not the long vacation. Full-time students are not eligible for Income Support and in many instances it is inappropriate for them to have to depend on families and friends support in the vacation. Sponsoring dioceses are asked to supplement the expenses of single ordinands but unlike married ordinands there is not one standard recommended amount. Ministry Division issues a single ordinands’ budget form with guidelines. Almost all dioceses have now adopted this and you should contact your diocese if help is needed. Diocesan grants up to £1,345 pa are included in the national pooling arrangements.
BENEFITS AND REBATES
Income Tax – Don’t forget to claim back any income tax you may be owed from your tax office when you start training.
Child Benefit – Available to everyone with children under 16 (19 if still in full time education). £20,30 per week for the first child and £13.40 per week for each subsequent child.
Child Tax Credit – Married students with children (under 16 or 19 if still in full time education) can apply. Unlike Child Benefit, it is means-tested; couples with a joint income of up to £60,000 pa may be eligible to receive some tax credit. It is paid by the Inland Revenue not the DWP directly to “the person… mainly responsible for caring for the children in the family”. It is paid in addition to Child Benefit. It does not require one partner to be working and paying tax. Applicants can check eligibility on-line at: www.hmrc.gov.uk/taxcredits, and then apply online. Alternatively claims packs are available, phone – 0800 500 222. The Tax Credits helpline is 0845 300 3900.
Working Tax Credit – Replaced Working Families Credit, which in turn replaced Family Credit. This may be claimed where one partner works more than 16 hours a week and there are sizeable childcare costs to be met. But couples without children are also eligible to apply.
Income Support – Not generally available to students but partners may be able to claim.
Medical – You may be entitled to a percentage rebate on prescriptions, dental and optical treatment. Fill in form HC1 available from doctors, dentists and opticians when you register at their practice.
Council Tax – Ordinands living in College rooms should be exempt from the tax. Those living outside College who are full-time students will be eligible for Council Tax discount; if income and savings are below relevant levels Council Tax benefit can be claimed for the married ordinand. Provision for Council Tax should be included in the estimated budget agreed with the diocese. This area is very complicated, especially for married ordinands. A number of Councils have agreed that, where a married student lives in a College-owned or College-managed accommodation, the household should be completely exempt from Council Tax. You will need to check the position with your particular college and College Bursar, who should be able to advise.
Home owners -If you have a house that you own, which is let whilst you train, you are not liable for Council Tax for such time as it is paid by the tenant. However, if the property is empty for any period you will be liable to Council Tax at half-rate on a second home.
Regional Courses – Students studying for 21 hours or more for 24 weeks per year, with limited income may be able to gain a Council Tax Rebate If you fulfil these conditions then you will need a ‘student certificate’ from your Principal, confirming your eligibility, for your Council.
Life Assurance – All dioceses now provide for Life Cover via Ecclesiastical Insurance Group’s scheme for married candidates. This provides funds in the event of the death of a married candidate (or lone parent) in College training. The scheme has been extended to also include the option of providing cover for any married candidate (or lone parent) sponsored for stipendiary ministry who is training on a Regional Course, for a period of three months before the date of ordination.
Debt – Dioceses ask candidates to complete a Statement of Financial Position form before attending a Bishops’ Advisory Panel. The aim is to ensure that candidates embark upon ordained ministry free of significant financial liabilities. Details of any debts, including student loans, must be given in the form; debt is acceptable provided that there is a realistic plan in place to ensure that it will be managed and can be repaid.
FINANCE AFTER ORDINATION:
Those ordained to full-time stipendiary ministry are eligible for a number of grants paid by the ordaining diocese. The Central Stipends Authority recommends the following minimum levels of grant:
* Removal Expenses – The cost of removal van, labour etc. You will usually need to provide three quotes.
* Resettlement Grant – A minimum of £2,040 (current rate, 2010-11) to cover moving-in expenses.
* First Appointment Grant -a minimum of £2,040 (current rate, 2010-11) to cover robes, books and other expenses incurred upon taking up your first post. (A further grant is available on taking up your first incumbency.)
Assistance available from the Church Commissioners:
Stipends Advance – The Church Commissioners offer interest-free stipend advances of up to £900 to candidates about to be ordained, repayable over a term of up to twelve months.
Car Loans – All clergy who are paid through the Church Commissioners are eligible for a car loan, subject to the following conditions. The loan should not exceed the sum of £10,215; the maximum term of the loan is 4 years. The car should not be more than four years old (if it is more than this it may still be possible to purchase subject to a mechanical inspection). An HPI/Car Data Check is required for all second-hand vehicles. The loan is subject to a rate of interest which remains fixed once the loan has been agreed. (The current rate is 5.0% ) NB! The Church Commissioners usually send further details on loans to ordinands in their final year, either direct, or through the training institutions, in the Spring of each year. For more information click here
Tax Deductible Expenses – The Church Commissioners’ booklet also gives details about tax, tax allowances and tax deductible expenses. NSMs should note that they can only claim tax relief for church duty related expenditure, on income derived as a minister and not on income from other employment.
Provision for NSMs and OLMs – Generally these grants and assistance are not available to these categories. Where appropriate, financial provision is negotiated between the individual, the parish and the diocese.
Clergy Stipend – The current National Minimum Stipend (from April 2010) is £20,430 pa.
APPLYING TO A TRUST
Training for ministry can be a difficult time financially. Fear not, there are many people who want to help. Don’t try and go it alone. Your Diocese, your parish, your college or course and various grant-making trusts may all be sources of help.
Before you apply – Find out as much as you can about the trust’s purpose and make sure your need fits.
Make sure that you provide all the information they need to decide on your claim – which will probably include clear information about amount needed and other resources.
Write to the correct people: HINT – check the section “How to address the clergy” in Crockford’s Clerical Dictionary.)
Visit the AOCM Grant Making Trusts section