Clergy Pensions (Amendment) Measure

HL Deb 14 July 1982 vol 433 cc408-11

7.20 p.m.

The Lord Bishop of Rochester rose to move, That this House do direct that, in accordance with the Church of England Assembly (Powers) Act 1919, the Clergy Pensions (Amendment) Measure be presented to Her Majesty for the Royal Assent.

The right reverend Prelate said: My Lords, the first of the two Measures passed by the General Synod which I have to ask your Lordships' House to agree shall be presented for the Royal Assent is concerned with new developments in the provision of pensions and retirement housing for clergy, deaconesses and licensed lay workers. It is hard to believe that such provision in the Church of England has only become the shared responsibility of the whole Church in the last 60 years, and that before that the only pension payable to a retired priest came out of the stipend of his successor.

In recent years steady progress has been made both in increasing pensions and in providing a variety of ways in which priests who are ready to retire from full-time work can be assisted with housing in their retirement. Many senior clergymen will tell you very gratefully that the anxieties arising from the prospect of retirement have been considerably reduced for them in recent years. As a diocesan bishop, I know at first hand how helpful the partnership between a diocese and the pensions board can he for those who after 40 years or more in the ministry, living in a series of tied cottages, some larger than they could have wished, now look for a house of their own and the opportunity of continuing to exercise their ministry without having to carry the unceasing burden, day in and day out, of the responsibility for a parish, with all that that means.

This present Measure is a further step in a continuing process of providing more adequately for those who serve the Church of England in the full-time ministry, ordained or lay. It will make possible a further increase in the proportion of the Church Commissioners' general fund allocated to pensions. In the 10 years 1971 to 1981, this doubled from 14 per cent. to 28 per cent. of the total. The pension for full service is now £3,060 a year, and the lump sum payable on retirement after 40 years' service is now £4,900.

One consequence of this is that the Commissioners now devote less of their general fund to stipends, which means that many parishes are now responsible for more than half of their incumbent's stipend. It could well be that not many years from now the laity in the parishes will be entirely responsible for the stipend of the clergy on active service, leaving the commissioners to provide for them in retirement. The group from overseas, known as Partners in Mission, who looked critically at the central structures and management of the Church of England a year or two ago, left us in no doubt whatever that such a development in their judgment would be a thoroughly good thing for the life of the Church in this country.

May I now refer very briefly to the six clauses of this short and modest Measure to amend the Clergy Pensions Measure of 1961. Clause 1 seeks to extend the powers of the Church Commissioners, enabling them to make loans out of capital to the pensions board. Clause 2 makes it possible for a person qualifying for a pension to receive a loan within three years prior to his or her retirement. This will be a great help to those who wish to purchase their retirement house ahead of time and to spread the cost over a longer period. Clause 3 ensures that the pension rights of someone who starts as a licensed lay worker and later in life is ordained to the priesthood are not affected by their change of status. The remaining clauses widen the powers of the investments by the pension board, bringing them into line with the powers exercised by most trustees of pension funds.

The final approval of the General Synod was given to this Measure when a total of 254 votes were given by the bishops, clergy and laity in favour, and there were no votes against. Subsequently, the Ecclesiastical Committee of Parliament expressed the opinion that the Measure is expedient: another place has concurred in that and I now ask your Lordships to do the same. I beg to move.

Moved, That this House do direct that, in accordance with the Church of England Assembly (Powers) Act 1919, the Clergy Pensions (Amendment) Measure be presented to Her Majesty for the Royal Assent.—(The Lord Bishop of Rochester.)

Lord Bishopston

My Lords, I am sure that your Lordships will be grateful to the right reverend Prelate the Bishop of Rochester for the way in which he has detailed the provisions of this Measure. I am pleased, speaking from these Benches, to give a welcome to the Measure because it will facilitate the efforts of the Church of England in providing for clergy pensions.

I must declare an interest as a Church commissioner although, of course, I have no pecuniary interest. With other commissioners, whether appointed (as I am) or elected by General Synod, our pleasure is to administer without payment the Church estates under Acts of Parliament. As your Lordships will know, the commissioners' income is mainly devoted to clergy stipends and pensions, as well as to housing and, of course, with close accountability to Parliament itself.

As the right reverend Prelate has said, the Measure makes provision for clergy pensions by extending the powers of the Church commissioners to make loans to the pensions board and by granting the other facilities which have also been detailed. I am sure there will be widespread pleasure at the proposals contained in the Measure, for it is the Church's recognition of the value of the work done by the clergy and indeed by other Church workers and the laity within our dioceses. It also provides the occasion to review current practice in respect of the pension funds.

The Measure, as the right reverend Prelate has said, has the full support of the General Synod. It is, of course, known and recognised that our clergy perform an important role not only spiritually but in other vital ways within our communities. It is only fitting and proper that they should have the kind of security which this Measure aims to give. It is interesting to note from the annual report of the Church commissioners, recently published, the figures quoted by the right reverend Prelate; and one is pleased to note the increasing amount which has been devoted to clergy pensions—19.7 per cent. of expenditure in 1981; I think the figure was £17.9 million.

I understand that a simplified system of pension differentials approved by the General Synod in November 1980 was brought into operation on 1st April last and that discussions are being held with dioceses on ways to achieve greater uniformity in administration. All this will be helpful in providing the kind of reward for service to which the clergy are entitled. I am very glad also to say that I believe the Measure to be expedient and that it should receive the support of your Lordships.

The Lord Bishop of Rochester

My Lords, with the leave of the House, may I thank my fellow Church Commissioner for his support and for the additional information he has given to your Lordships which, I am sure, is helpful to those who wish to understand the way in which the rather complex arrangement between the Church Commissioners, the pensions board and the dioceses operates to provide adequate pensions and housing for the clergy and lay workers.

On Question, Motion agreed to.