Funding the Diocese – Diocese of Swansea and Brecon

Diocesan Finance

Funding the Diocese

An introduction to our budgeted finances for 2026, with specific focus on explaining the compilation of Ministry Share.

Diocesan 2026 Budget

How the diocese is funded

As a general principle, annual budgets are intended to be cost neutral, so that all costs are covered by income received. Ministry Share income meets the direct costs of ministry, with Representative Body (RB) Partnership Funding contributing to the indirect cost of ministry — including Bishop's Officers, support to Ministry Areas and grants.

Direct costs of ministry are paid for by the RB and cross-charged to the diocese every quarter. The remainder of indirect costs and DBF staffing is met from investment returns, restricted grants from the RB and other forms of income.

Income
Ministry Share £2,879,225
RB Grants & Financial Support Office, Admin & Churches £684,849  ·  Inception Church Growth Fund £680,589  ·  MA Projects Church Growth Fund £1,574,554 £2,939,991
Other Grants & Income £68,705
Investment Income £153,908
Funding from Reserves £576,955

Total income & reserves

£6,618,784

Total cost

£6,618,784

Expenditure
Cost of Ministry £2,516,466
Grant Awards £242,944
Grant Awards — MA Projects Church Growth Fund £1,574,554
DBF Admin & Compliance £638,842
Sector Ministry & Bishop's Officers £237,268
Support to Ministry Areas £492,256
Uncollected Ministry Share Provision £916,454
Cost of Ministry (excluding Clergy Pension)

Includes clergy stipends, National Insurance, housing, training and dignitary costs (e.g. Archdeacons).

Grant Funding Provided

DBF funds used to support the life of the Church. Includes grant funds for Mission Fund, Churches & Pastoral, Assistance Committee, Social Responsibility and World Mission.

DBF Admin & Compliance

Includes the diocese's share of administrative and support costs recharged by the RB; Diocesan Centre staff costs; office and committee costs.

Sector Ministries & Bishop's Officers

Includes costs associated with Bishop's Officers and the various forms of ministry within the diocese — interfaith, education, evangelism, formation and more.

Support to Ministry Areas

Includes costs for Ministry Area development and communications.

Representative Body of the Church in Wales

RB Budget

The Representative Body (RB) is the central financial body of the Church in Wales. Its income funds ministry across the whole province, with a significant proportion directed to dioceses through partnership funding and grants.

98%

of the RB's income is received from stock exchange and property investments

£29m

of the £100m committed to fund growth has been approved to date

RB expenditure is funded through the total return on its investments. The breakdown of how those funds are deployed is as follows:

Support for ministry
59%
Support for diocese and parishes
24%
Support costs
9%
Other financial support
7%
Church property
7%
Communications
1%

Further information can be found in the RB's report and accounts at churchinwales.org.uk.

Ministry Share

Your Ministry Share and how it works

Ministry Share is the primary means by which ministry areas contribute to the cost of ministry across the diocese. A 2021 review re-affirmed the principles governing how it is apportioned.

1

The process of apportionment should be totally transparent.

2

Apportionment is directly linked to provision of ministry within each ministry area — all standard stipendiary budgeted costs within a ministry area are apportioned to that area.

3

Costs of curates and clergy in their first role of responsibility are equally distributed across the diocese, so that they can be placed to obtain appropriate training and experience, and host ministry areas are not financially burdened.

4

Apportionment figures become available in late November of the previous year, after the approval of annual budgets by the DBF Full Board and Executive Committee.

5

Every effort will be made to keep ministry area annual increases to no more than 5%.

6

If receipts outweigh actual costs, any excess is rebated back to ministry areas, pro-rata according to the percentage received, and offset against arrears in the first instance.

7

In 2026 the share calculation was adapted so that the variable costs associated with housing were consolidated to create a standard housing cost per cleric, regardless of the rate of rental or council tax in a particular area. This gives parity when considering the total cost of a stipendiary headcount.

Apportionment

Ministry Share is calculated on a ministry area basis. Variations directly relate to the numbers of stipends (paid clergy) and properties. MAC Trustees can allocate share payments across the churches in the ministry area.

The three-year transition adjustment applied between 2023 and 2025 ended in 2025. A full breakdown of ministry area allocations is included in the downloadable document below.

Frequently asked questions

Why is share apportioned in this way?

A diocesan-wide consultation process was carried out in 2017 to review the apportionment method. The system we have today is derived from that discussion. The principles were reviewed again in 2021 and re-affirmed. In 2022 we commenced a three-year transition period to ease the impact of moving to ministry areas. This ended in 2025. For 2026 a minor adjustment was made to share housing costs equally across all ministry areas.

Is share connected to worshipper numbers?

No. The 2017 review concluded that connecting share to worshipper numbers was a barrier to growth and encouraged stagnation or decline. It also did not encourage trustees to address unsustainable financial problems. Share allocation is now based on the direct cost of ministry. MAC Trustees can allocate share payments across the churches in their ministry area using a methodology suitable for their own area.

Who agrees the Ministry Share levels each year?

Once collated, costs are compiled into a ministry area level allocation structure reviewed by the DBF Executive Committee in October. Any identified amendments are made, and the costs are recommended to the Full Board for consideration at its November meeting. Each ministry area has clerical and lay elected representatives at that meeting. Adjustments may be made until final approval is achieved, after which figures are distributed to ministry areas.

Can we have the costs confirmed earlier in the year?

Calculating ministry share earlier in the year would make the figures less accurate because they are based on actual and predicted headcounts. The costs calculated and the budget decisions are taken to the Full Board in mid-November and distributed following budget approval.

How does the rebate work?

If the total Ministry Share collected in a year is greater than the total cost of ministry, the surplus is returned as a rebate. Rebates are made pro-rata according to the percentage paid, and allocated to arrears and/or future Ministry Share. The DBF does not budget to profit from share or retain monies from share.

What happens if we can't pay?

The allocation process is designed so that each ministry area can review or re-apportion Ministry Share internally to react to unforeseen circumstances. The first action should be for MAC Trustees to review the internal allocation to see if adjustments could be made. Continuous discussions with your archdeacon and diocesan secretary should highlight any ministry area-wide financial concerns. When assessing a ministry area's income, expenditure and reserves it may be possible to recommend a DBF Share Assistance Grant.

If a ministry area does not meet its full share for the year, it will remain as an outstanding arrear and carried over to subsequent years until paid in full. When a clerical vacancy occurs, the level of share collection and arrears will be considered in the decision process to appoint a new cleric.

What happened to the Block Grant?

The Block Grant scheme was no longer fit for purpose — its formulae and criteria had both become irrelevant to today's Church. A new fund has been established called the Partnership Fund, paid by the RB to the DBF based on three core DBF staff costs.

What happens if we have a clerical vacancy?

Your archdeacon will work with your MAL and MAC Trustees to compile a ministry area profile, as part of the recruitment plan and to ensure suitable interim arrangements are in place. During a vacancy there are usually additional costs — including unworked notice periods, removals, recruitment, and property maintenance. For this reason, rebates of share are not provided during vacancies. Your archdeacon will work with your team to minimise disruption during the interregnum.

Ministry Share Collection

Collection trends

The DBF continuously monitors the collection rates of Ministry Share as an indicator of where support or action is required. Collection rates have seen a significant reduction in 2023, 2024 and a further reduction in 2025. Through discussions with MAC Trustees, the most notable factors are a drop in fundraising and giving after the pandemic, and a necessary prioritisation of working relationships within the new ministry areas over share discussions.

The major cost of ministry is clerical headcount. Clergy are paid monthly by the RB, which invoices costs to the DBF quarterly. Any shortfall between share received and the RB invoice is bridged by DBF reserves. In 2025 the reduction in collection rate resulted in a draw-down of £450,000 from the DBF's investment portfolio, reducing annual investment income by an estimated 10%. A further £250,000 withdrawal is budgeted for 2026. This is an unsustainable position, and the DBF is working with ministry areas and MAC Trustees to explore how to address it.

2025 2024 2023 2022 2021 2020
Ministry Share £2,885,401 £2,637,981 £2,614,764 £2,562,648 £2,508,973 £2,739,711
Cash receipts £1,933,001 £2,012,631 £2,088,610 £1,880,690 £1,463,411 £1,653,716
Rebate / Covid support — — — £208,272 £828,278 £938,846
Assistance grants £70,000 — — £49,565 £20,125 £10,000
Total receipts £2,003,001 £2,012,631 £2,088,610 £2,151,223 £2,311,814 £2,602,562
Unpaid £882,400 £625,350 £526,154 £411,425 £197,159 £137,149
Collection rate 69.4% 76.3% 79.9% 83.9% 92.1% 95.0%

Five-year forecast

The table below shows the projected impact on unrestricted reserves if collection rates remain at 2025 levels. Ministry Share figures assume 4% inflation, with a stepped allocation of ministry area administrator costs from 2028.

2026 2027 2028 2029 2030
Ministry Share £2,879,225 £2,994,394 £3,173,246 £3,356,889 £3,545,515
Uncollected provision £849,371 £883,346 £936,108 £990,282 £1,045,927
Unrestricted reserves at year end £3,869,350 £2,986,003 £2,049,896 £1,059,614 −£13,687

The DBF recognises that our communities are the only place in our Church in Wales structure where we can attract fundraising. A DBF-funded one-year trial of contactless giving is under way — electronic giving that reaches people who would not otherwise be able to give. By the end of the trial, we hope to have identified areas where a permanent device would be financially sustainable. Continuous discussions with MAC Trustees, archdeacons, ministry area standing committee representatives and the diocesan secretary will explore further ways to support ministry areas and communities in increasing income.

Additional Funding Streams

Additional funding secured

The following funding streams have been secured from the RB. The DBF Executive has expressed its thanks to the RB, on behalf of the diocese and its ministry areas, for this additional funding support.

Structural Resilience Fund

Established in 2024 to promote growth and support financial sustainability, this is a ten-year, non-inflationary grant from the RB, allocated to dioceses with a priority weighting of 25% deprivation, 30% population, 35% open churches and 10% schools. In Swansea and Brecon, it subsidises operational funds available to ministry areas in support of growth and sustainability, including the Mission Fund.

Inception Church Growth Fund

As the diocese restructured into new ministry areas, three key funding requirements were identified: ministry area administrators, succession planning, and staffing for direct mission and ministry. Following discussion with the RB, they agreed to allocate £3m from the closing Evangelism Fund and £3.4m from the new Church Growth Fund in support of these priorities. The resulting Inception Church Growth Fund makes a total of £6.4m available to draw down over a ten-year period, restricted to those three identified priorities.

1. Ministry Area Administrators. One of the key learnings from other dioceses was the direct correlation between successful, growing ministry areas and the employment of administrators. Employing administrators releases clergy and laity from ever-increasing legislative compliance requirements, enabling space for prioritising growth, outreach and evangelism. Administrators are employed through the DBF, which has the employment support structures in place. This is a ten-year fund, fully funded for the first five years, tapering into Ministry Share costs in years six to ten, and fully funded from share in year eleven and beyond.

2. Succession Planning. The age profile of clergy at the end of 2022 was such that 60% of clerics would retire within two to five years. This fund has enabled the creation of additional clerical posts to initially grow and strengthen ministry areas, and to sustain ministry as retirements occur. For 2026, £117,093 has been budgeted from this fund — visible in the ministry area allocation tables as the line "Credit for Clergy roles funded from Growth Fund".

3. Staffing Direct Mission and Ministry. Five key diocesan staff roles that directly supported mission and ministry in our ministry areas were funded through restricted funds due to cease. This three-year fund enabled their continuation without placing additional burden on share. Of the five roles, one reached the end of its fixed term, one was redeployed within the diocese, and the remaining three were made redundant at the end of 2025.

Year Inception Grant Ministry Share
2023–2027100%0%
202890%10%
202970%30%
203050%50%
203130%70%
203210%90%
20330%100%

Church Growth Fund

The Church Growth Fund is a £100m, ten-year initiative for the whole of Wales providing funding for projects targeting significant, intentional church growth. Grant funds are awarded via an application process. Bishop's staff and diocesan staff worked closely with churches and ministry areas to develop robust applications — including detailed performance targets and cash flow projections — which resulted in four successful bids, bringing an additional £6.3m into the diocese.

These funds are restricted to specific line items within the bids. Performance targets and financial expenditure are regularly monitored by our project manager and finance team, with detailed performance reports submitted to the RB quarterly to draw down each tranche of funding.

Wonder of Wellbeing, Gower

£763,278 / 5 years

Connecting people to a sense of God's peace and presence around Gower and its historic churches, this project was awarded a £763,278 grant to build on the work of its successful locally funded pilot year. The project has established strong foundations in prayer and presence, with creative-based approaches effectively widening engagement across Gower. The priority for 2026 is to consolidate proven models and develop clear pathways from engagement to discipleship. Further information is available at wonderofwellbeinggower.org.

Swansea Minster

£2.8m / 5 years

Part of a multi-million-pound transformation for St Mary's Church in Swansea city centre to become the first minster church in Wales. Enabling the employment of new members of staff, both clergy and lay, this investment will increase the church's ability to serve the Swansea city centre community — opening its doors seven days a week for prayer, peaceful space, presence and proclamation. Its first year has seen the Minster increasingly recognised as a spiritual and civic anchor in the city. Alongside art, music, café hospitality and schools outreach, these public-facing ministries are creating accessible entry points for faith exploration and fostering relational engagement.

Stepping Stones, Gorseinon

£2.8m / 5½ years

Having already secured £1.4m of external funding for building works as phase one, this application was awarded £2.8m to deliver phase two: investing in people, leadership and life-changing evangelism. The project aims to establish a dedicated evangelism team, working alongside an active community to provide invitational pathways — stepping stones — to faith. St Catherine's has employed an operations and finance manager and caretaker to set up the infrastructure and foundation work required before full commencement. Further information is available on the diocesan website.

Diocesan Project Manager

To ensure the efficient delivery of Church Growth Fund projects, the RB has fully funded a project manager for each diocese. With dual reporting arrangements to both the DBF and the RB, the project manager oversees the tier 2 grant projects to ensure accurate reporting and programme management.

Full document

Funding the Diocese 2026

Complete budget details including Ministry Share allocations by ministry area — PDF, 20 pages

Download PDF

We hope you find this information useful. Please do feel free to contact either Huw Evans, our Finance Manager, or the Diocesan Secretary, if you have any queries.

Huw Evans

Finance Manager

diocese.swanbrec@churchinwales.org.uk  |  01874 623716

Louise Pearson

Diocesan Secretary

diocese.swanbrec@churchinwales.org.uk  |  01874 623716