Most of these costs will now be covered by distributions from the Church of England’s national endowment fund (managed by the Church Commissioners), in an effort to help dioceses become more financially sustainable long-term, and to enable available diocesan funds to be spent on local parish ministry.

The apportionment contribution, which stood at a total of £32m in 2025, was made under the five ‘votes’ of General Synod, meaning it supported ministry training, Archbishops’ Council National Church responsibilities, grants (largely referring to ecumenical matters and the Anglican Communion Office), mission agency pensions and clergy retirement housing.

However, due to financial pressures on dioceses leading to capping or freezing of apportionment, by 2025, diocesan contributions were only covering 50% of these costs, down from 75% in 2019.

Therefore, to reduce complexity and ease financial pressure on dioceses the Diocesan Finances Review undertaken in 2023/24 recommended the abolition of diocesan apportionment in 2026.

This means that four of the five ‘votes’ will now be financed by the Church Commissioners’ investments, including Archbishops’ Council National Church responsibilities, grants, mission agency pensions and clergy retirement housing, resulting in reduced annualised costs to dioceses of £20m.

This ongoing saving will help dioceses to cover the £18m estimated annualised costs of increasing stipends from April 2026 to catch up with historic inflation.

Changes to simplify contributions to ministry training, both training costs and ordinand maintenance costs, have also been agreed and will take place during 2026.

28 dioceses will benefit from a £10m increase in Lowest Income Communities Funding, which supports around 2,000 of the most deprived parishes in 28 dioceses.

Short-term financial support of £200m will be distributed to dioceses over nine years from 2026 to ease pressures. In 2026, the first £25m will be distributed formulaically to dioceses. A further £11m will be available to be awarded as additional time-limited support through the Diocesan Investment Programme to help dioceses to sustain ministry whilst waiting for their longer-term plans to develop missional health and financial sustainability to bear fruit.

Carl Hughes, Chairman of the Archbishops’ Council’s Finance Committee, said: “I am delighted to mark the end of diocesan apportionment, following recommendations in the Diocesan Finance Review and consultation with all dioceses.

“Whilst we know that these new mechanisms will not automatically solve dioceses’ financial challenges, this is an important step in simplification of financial structures and in ensuring more diocesan funds are spent on local ministry.

“We expect that the total net benefit to dioceses in 2026 will be over £50m, which we hope will both ease financial pressures and support the stipend increase.”