HC Deb 01 December 1997 vol 302 cc16-7
34. Mr. Bill O'Brien

What assessment the Church Commissioners have made of the impact of pension provisions on the number of people applying for a career in the Church since Parliament approved the current pension provisions. [16831]

Mr. Straw

This is not strictly a matter for the Church Commissioners. I understand, however, from the advisory board of ministry that the number of candidates recommended for training for the ministry increased significantly in 1996 and this year. Confidence in the Church's arrangements for funding the ministry may have played a part in this encouraging development.

Mr. O'Brien

Does my right hon. Friend accept that it is time that the Church Commissioners took far more interest in ensuring that those who serve in the Church receive proper pensions and other rights? I consider that they are entitled to the same pension rights as Members of Parliament. I hope that the Church Commissioners will take some interest in the future of those who serve in the Church.

Mr. Straw

I shall ensure that my hon. Friend's remarks are passed on to the commissioners who deal directly and professionally with the issue. It is reasonable to point out that the number of people recommended for training was 420 in 1995, 453 in 1996 and 486 so far in 1997. The Church Commissioners are concerned to maintain the funding of clergy pensions and that is why they have made new arrangements. From 1 January next year, dioceses will meet the cost from funds provided by parishes of all clergy pension rights for future service, but not for past service. That is being done not least so that the commissioners can ensure the future funding of stipends in needy areas.

Mr. Sayeed

In his Budget, the Chancellor 0069mposed a £5 billion tax on pensions. How much will it cost parishioners to fund that tax?

Mr. Straw

I think that the hon. Gentleman is talking about changes to advance corporation tax. The cost to the Church Commissioners will be £12 million per annum in 1997 values. The commissioners tell me that they welcome the time allowed by the Government to plan for the removal of ACT relief and the phasing of its impact between 1999 and 2004.