Church of England Facing 'Financial Disaster' Amid Net Zero and Reparations Spending, Report Warns

A new report suggests the Church of England is on a path toward financial disaster, attributing the crisis to ambitious Net Zero targets and a £100 million fund designated for slavery reparations. The study, titled 'Wasted Money in a Diminishing Church,' argues that social justice projects are overly costly and unsustainable, contributing to declining church attendance and financial deficits across dioceses.

According to Canon Robin Gill and Professor John Craven, the authors of the report, initiatives related to Net Zero goals and reparative justice are perceived as 'unrealistic, extravagant, unsustainable and deeply depressing' by congregations. The Church of England aims to achieve net zero carbon emissions by 2030 and has allocated £190 million for eco-friendly renovations, though it has acknowledged it will not meet this deadline. Additionally, a £100 million fund, known as 'Project Spire,' is dedicated to addressing historical links to the transatlantic slave trade. This fund has drawn criticism from some Conservative MPs and peers who have labeled it a 'legally dubious vanity project.'

The report identifies a significant 'crisis' characterized by falling attendance, donations, and ordinations. Currently, 37 out of 42 dioceses are operating with financial deficits, a sharp increase from 18 in 2019. The authors also point to excessive bureaucracy, with diocesan staff numbers rising 80% since 2005, from 1,300 to 2,300. New positions include net zero officers, racial justice leads, and safeguarding experts, with some dioceses now employing as many administrators as ministers.

"We want to break this silence because we are convinced that the Church of England is heading for financial disaster," the report states. "More and more of its funds are being spent on administration in every diocese while churchgoing continues to decline, and less and less is spent on supporting parish clergy." The authors claim the Church of England is becoming unsustainable in both finances and attendance, noting that while churchgoing peaked in the early Victorian era, the Church now has four times as many bishops as it did then, with less than a quarter of the churchgoers.

Recommendations from the report include a significant reduction in the number of dioceses and diocesan bishops, a substantial decrease in managers and administrators, and a cut of at least three-quarters in funds allocated to national strategic investments. The report also advocates for deaneries to become primary budget holders and for funding to be allocated based on relative deprivation. It suggests that suffragan bishops and archdeacons should take on part-time parish ministry roles and calls for regular, independently verified reports on project financing and outcomes.

In response, a spokesperson for the Church of England acknowledged the report as a "wide-ranging and thoughtful contribution" to ongoing discussions about the challenges faced. The spokesperson noted that the world has changed significantly since the Reformation and that the Church is adapting. The response also highlighted existing examples of successful resource sharing at national and regional levels, and pointed out that increased numbers of safeguarding staff, crucial for protecting vulnerable individuals, are vital despite being flagged as administrative growth in the report.

While the report paints a concerning financial picture, the Church of England reported in May that church attendance had risen for the fifth consecutive year, with an estimated 1.02 million people regularly worshipping in 2025. This represents a 1.4% increase from the previous year, though attendance remains below pre-pandemic levels. In 2019, the worshipping community numbered 1.11 million.