Money Matters 2008
Dr Mark Hodge (Ministry Division Grants)
This article sets out the main features of current student financing. AOCM has been involved in many issues on behalf of ordinands, including developments in student finance. We recognise that readers are from a diversity of financial positions. Some will have previously enjoyed a comfortable salary and lifestyle and will have to adapt to a student budget. There are others who are used to living on a grant or low income who may well begin training with depleted or even negative resources.
The diversity of financial positions may continue to differ slightly from diocese to diocese, from single to married ordinands, or simply on whether or not you are aware of which charities or trusts to contact in the hope of obtaining financial assistance. We have included a list of grant-making trusts in this handbook. As far as differences between dioceses are concerned, there can still be variations as mentioned above, but dioceses are moving to a far more uniform system.
Some Changes
There have been some recent changes and there are some further changes afoot, to be introduced September 2008. A revised system for the funding of the Theological Colleges and Regional Courses is to be implemented which will be based upon block grants. The block grants will be made at standard levels, dependant upon the number of sponsored ordinands attending each institution. As part-and-parcel of these changes, in the current year set payments have been made to the Colleges for the maintenance of students at College. The maintenance for married and single students has been paid at set, separate levels and this has meant that the previously available College rebates have generally no longer been made to married students.
At present, training grants for both College and Course training are paid through the institutions in termly instalments at the beginning of each term. It is intended that the new system will include the payment of the maintenance monies direct to students, whose responsibility it will then be to pay the appropriate maintenance fees to the College.
LEA Grants
It is generally no longer possible for the LEAs to make discretionary awards for training. It is therefore now only appropriate to make an application to the LEA if you are undertaking a first degree course at College and have not previously received LEA assistance.
Ministry Division Grants
If training at a College, as soon as you have your College place confirmed after selection you should complete the grant application form for a grant from Central Church Funds and send this to the Grants Officer at the Ministry Division. College tuition fees will always be met in full (if not part-met by the LEA). However, if you have unearned income of more than £1,095 per annum, read on. It is only the interest from savings and investments that can be taken into account in the assessment of grants. In the assessment of Ministry Division grants, the first £1,095 is disregarded, and 60% of interest above this level will normally be taken into account in the assessment of the maintenance grant. The parental contribution towards the grant, for ordinands under 25, has long ago been abolished.
Ministry Division Allowances
| ITEM | College Expenses Tuition and Maintenance | Personal Allowance Books Common Room Subs etc | Travel (if home more than 20 miles from College) | Vacation Short Vac/ Long Vac |
| PROVISION | Tuition = 100% Maintenance fees normally 100% |
£1,278 (payable in 3 termly instalments) | Rate banded according to distance | £358 short £402 long |
Although primary responsibility for the support of the families of married ordinands rests with the sponsoring diocese, the 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.
Regional Courses
The maximum grant per annum payable by the Ministry Division consists of:
- Course fees, met in full in all cases; Book grants of £231 per annum; Travel costs
Ministry Division book and travel grants for students on the Regional Courses are assessed on a scale that relates to income and commitments.
In the case of OLM Scheme candidates there is a contribution from the Ministry Division towards the OLM Scheme’s running costs. The diocese has responsibility for the funding of students’ costs, which may in some cases be by arrangement between the diocese and the parish.
Diocesan Grants
Diocesan Family Support
The families of ordinands in training are supported mainly by the sponsoring diocese. The costs are evenly distributed between the dioceses by a system of pooling. Some provision for housing will be made within the limits set for individual Colleges ranging from £7,665 to £9,825. In addition to this, family support is provided according to the following guidelines:
| Family Situation | Couple | Lone Parent | Per child Over 11 | Per Child under 11 |
| Recommended diocesan support per annum | £8,925 | £5,728 | £2,008 | £1,323 |
Married ordinands’ removal expenses to College are also met by a diocesan grant, in addition to the first year’s annual budget.
Deductions
The recommended figure 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/TAP Maintenance Contribution |
|
State Benefits (including Child Benefit); Child Tax Credit 75% after the first £1,990 |
|
Earned income above £995 pa; unearned income at the discretion of the diocese |
|
Income from Charities above £410 |
|
75% of Working Partners Income after the first £1,990 |
|
= |
|
DIOCESAN GRANT |
Diocesan Support for Single Students
This has been an area of concern for a number of years and AOCM has been active in pressing for more help for single ordinands. Although the grants payable by the Ministry Division are designed to provide for the ordinand throughout the academic year, it is the level of funding during the long vacation period that has caused problems. Ordinands are not generally permitted to claim Income Support and in the majority of cases it is inappropriate that they should become financially dependant on their families and friends during the vacation period.
In order to address this situation, sponsoring dioceses are asked to supplement the expenses of their ordinands. The Ministry Division issues a budget form with guideline notes for single ordinands. Almost all dioceses have now adopted this and you are urged to contact your diocese if help is needed. Diocesan grants up to £1,250 pa are included in the national pooling arrangements.
Benefits and Rebates
Income Tax
Don’t forget to claim back any income tax that you may be owed from your tax office when you start training.
Child Benefit
Available to everyone with children under 16 (or 19 if they are still at school). £18.10 per week for the first child and £12.10 per week for each subsequent child.
Child Tax Credit
Child Tax Credit was introduced in April 2003. Married students with children (under 16 or under 19 if still at school) are eligible to apply. Unlike Child Benefit, it is means-tested but the means test is generous and even couples with a joint income of up to £60,000 pa may be eligible to receive a portion of this benefit. It is paid (by the Inland Revenue) direct to “the person who is mainly responsible for caring for the children in the family”. It is paid in addition to Child Benefit. Despite the name it does not require one partner to be working and paying tax. Applicants may check their eligibility on-line at www.hmrc.gov.uk/taxcredits, and then immediately apply on-line. Alternatively, a claim pack can be ordered by phone (0800 500 222). There is also a Tax Credits helpline - 0845 300 3900.
Working Tax Credit
Also introduced in April 2003, replacing Working Families Credit (which in turn replaced Family Credit). This may be applicable 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
This varies greatly from Council to Council. Ordinands living in College should be exempt from the tax, and those living outside the College from the personal element of the tax. For married ordinands in receipt of a Diocesan Family Maintenance Grant, provision for Council Tax (where applicable) 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. It is well worth speaking to the Council in which your respective College is, as well as your College Bursar, who should be able to advise.
Regional Courses: NB! Students studying for 21 hours or more for 24 weeks of the year who receive a 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 participate in the Ecclesiastical Insurance Group’s Life Assurance Scheme for married candidates. The scheme provides cover 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 now ask candidates to complete a Statement of Financial Position form before attending a Bishops’ Advisory Panel. Its stated purpose is to
ensure that candidates embark upon ordained ministry free of significant financial difficulties. The treatment of debt by dioceses is slightly more relaxed than it used to be - details of any debts, including student loans, must be given in the form, but a reasonable level of debt is acceptable provided that there is a realistic plan in place concerning how it will be managed.
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 provides guidelines recommending the minimum levels of grant as shown below:
Removal Expenses - The cost of removal van, labour etc. Be prepared to provide usually no less than three quotes.
Resettlement Grant - A minimum of £1,960 from April 2008 to cover moving-in expenses.
First Appointment Grant - a minimum of £1,960 from April 2008 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 £9,535 (increasing to £9,820 in April 2008) 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.
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.
Provisions 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
From April 2008 the National Minimum Stipend for all clergy will be £19,640 pa.