Money Matters

by Paul Hullyer revised by Dr Mark Hodge

Welcome to 'Money Matters'. 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.

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, in which case you will be eligible for a mandatory award towards College tuition fees.

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 £990 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 £990 is disregarded, and 60% of interest above this level will normally be taken into ac-count in the assessment of the maintenance grant. The parental contribution towards the grant, for ordinands under 25, was abolished in 1996.

Ministry Division Allowances

ITEM
PROVISION
College Expenses Tuition and Maintenance Tuition = 100%
Maintenance fees normally 100%
Personal Books, Common Room Subs. etc. £1,155 (payable on 3 termly instalments)
Travel (if home more than 20 miles from college Rate banded according to distance
Vacation: Short Vac/Long Vac £322 short
£363 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 of The Archbishops' Council consists of: Ministry Division book and travel grants for students studying on part time courses are assessed on a scale which relates to income and commitments.

In the case of OLM candidates there is a contribution from The Ministry Division to the Diocese towards the OLM Scheme's running costs. The responsibility for funding of students' costs is 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 £4,100 to £7,000. In addition to this family support is provided according to the following guidelines:

Family Situation Recommended diocesan support per annum
Couple £7,842
Lone Parent £5,051
Per Child over 11 £1,764
Per Child under 11 £1,162

Deductions


The recommended figure plus housing costs is the overall total figure that you will receive. The following, where applicable, are deducted, with the Diocese providing the shortfall.

DIAGRAM ILLUSTRATING DEDUCTIONS

Diocesan Support for Single Students

This has been an area of concern for a number of years and AOCM has been active in press-ing 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 fund-ing 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 dio-cese if help is needed. Diocesan grants up to £1,100 pa are now included in the national pool-ing 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). £16.05 per week for the first child and £10.75 per week for each subsequent child.

Child Tax Credit

Child Tax Credit is a new state benefit, introduced in April 2003, for which married students with children (under 16 or under 19 if still at school) are eligible to apply. Unlike Child Bene-fit, it is means-tested but the means test is generous and even couples with a joint income of up to £50,000 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 part-ner to be working and paying tax. Applicants may check their eligibility on-line at www.inlandrevenue.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, 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 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 accommo-dation, the household should be completely exempt from Council Tax. It is well worth speak-ing 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 eli-gibility, 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 sti-pendiary 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 at-tending a Bishops' Selection Conference. Its stated purpose is to ensure that candidates em-bark 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 into full-time stipendiary ministry are eligible for a number of grants paid by the ordaining Diocese. The Church Commissioners provide 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£1,750 from April 2004 to cover moving in expenses.

First Appointment Grant
A minimum of£1,580 from April 2004 to cover robes, books and other expenses incurred upon taking up your first post. (A further grant is payable upon taking up your first incumbency).

Assistance Available from the Church Commissioners

Stipends Advance

The Church Commissioners offer interest-free stipend advances of up to £840 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: NB! The Church Commissioners usually send further details on the above in the spring to ordinands in their final year, either direct, or through colleges and courses.

Tax Deductible Expenses

The Church Commissioners’ booklet also gives details about tax, tax allowances and tax de-ductible expenses. NSMs should note that they can only claim tax relief for church duty re-lated 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

From April 2004 the National Minimum Stipend for all clergy will be £17,530 pa. The previ-ous incremental pay scale applying to Assistant Staff will cease from April 2004.

Useful Contacts

Local

National

Many of the improvements to finance during training have been brought about through the efforts of AOCM in partnership with the Ministry Division. If you have suggestions for im-proving the grant system please contact the AOCM Treasurer or your AOCM representative.
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