THE THREAT hanging over the Church Commissioners’ clergy car loans, which are worth £5.8 million a year, was lifted this month. The global credit crunch has prompted the Commissioners’ Assets Committee to rethink
Andrew Brown, secretary to the Commissioners, said last Friday that on 3 July the Assets Committee had agreed to retain the scheme. It had “noted the concerns raised by clergy and other consultees, in particular the fact that the credit squeeze is making good alternative deals harder to find, and although it still believes that there is no good investment reason for the Commissioners to make these loans, it agreed to retain the scheme for the time being.”
In May, the committee had announced that it had taken a decision “in principle” to cut the five-per-cent loan scheme next year, although existing car loans to 1600 clerics would be honoured. A car was essential for many parish clergy in their work, a spokesman said. But the committee believed that it had spent too much money on “large and inflexible” loans, which produced an “inferior return”. It wanted higher returns from its investments, which would benefit the Church generally.
The committee also decided to close the curates’ housing and parsonage-loan schemes, which provide dioceses with finance to buy clergy housing. But it intends to continue to provide loans for housing for clergy spouses whose marriage has broken down.
Canon Robert Cotton, chairman of the Diocesan Clergy Chairs’ Forum and chairman of Guilford diocese’s 200-strong House of Clergy, said he had received a number of complaints about the plans to end the car-loan scheme.
“The Commissioners want to withdraw to what they see as their core business, but a lot of people are writing to me, saying that this is not a good thing to do. This is being felt like a bit more financial support for the clergy being withdrawn.”
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