Close-up of hands stacking gold coins, symbolizing financial growth and savings.

What is The Triennium Funding Working Group (TFWG)

What is the purpose of the TFWG?

The TFWG was formed in 2019.  It is a group of senior church men and women who advise on the distribution of a large part of the income from the Church Commissioners’ endowment funds of £10.6 billion.   At the time its purpose was described as follows:
 
“To examine options for the use of funds of the national Church, including distributions from the Church Commissioners’ funds, for the period 2020-2022 (taking account of implications for subsequent triennia), in the light of priorities identified by the House of Bishops; and to make recommendations to the House of Bishops, the Board of the Church Commissioners and to the Archbishops’ Council, for each body to take into account in exercising its responsibilities in determining distributions and the use of national Church funds for this period.”

The TFWG made recommendations in 2019 (for 2020-2022) and in 2022 (for 2023-25).  This funding period is coming to an end.  The current TFWG will report in May or June for the funding triennium 2026-28.

What is the policy background for distributions?

Similar to the 2023-25 triennium as reported to the General Synod in June 2022 in paper GS 2262, it is likely that the TFWG recommendations will be made in light of the Church’s Vision and Strategy for the 2020s, focussed on a church which is “Jesus Christ centred and shaped by the five marks of mission”.  “Flowing from that, the strategic priorities of the vision 

  • a church which is younger and more diverse, 
  • a church where mixed ecology is the norm and 
  • a church of missionary disciples

will underpin the Group’s priorities, along with funds to support the Church’s commitments in the areas of Net Zero, Racial Justice and Safeguarding and the delivery of certain statutory obligations.” Rather than focus only on 2026-28, “a broad set of allocations might be developed for three triennia to 2034, enabling plans to be made for significant, intentional investment in key priority areas over the forthcoming decade”.

How much money is available from the Church Commissioners?

Every three years the Church Commissioners’ Assets Committee undertake a thorough review, advised by their actuarial advisors to determine “the affordable and sustainable level of distributions from the Church of England’s national endowment fund. The Commissioners seek to maximise sustainable distributions whilst maintaining quantitative and qualitative intergenerational equity.”   GS 2262   In the current triennium £400 million per annum was allocated.

Who considers how it is distributed?

A review is undertaken to consider how those available funds should be distributed, with recommendations developed for funding allocations according to the key priorities identified for spending.  This review is carried out by a Triennium Funding Working Group (TFWG), which is a time-limited sub-committee of the Emerging Church Steering Group, with membership drawn from the House of Bishops, the Church Commissioners and the Archbishops’ Council.  The current TFWG is chaired by the Bishop of London.

What does the law say about the distribution of these funds?

The Charitable Objects of the Church Commissioners are “To promote the mission and ministry of the Church of England in the ways more particularly described in: the Church Commissioners Measure 1947; the Pastoral Measure 1983; and the National Institutions Measure 1998.”  

The National Institutions Measure 1998 S3 establishes “The [Archbishops’] Council shall consider and determine how to apply or distribute such sums as have been made available … and in applying or distributing those sums the Council shall have particular regard to the requirements of section 67 of the Ecclesiastical Commissioners Act 1840 relating to the making of additional provision for the cure of souls in parishes where such assistance is most required.”  

S67 of ECA 1840 reads: “Except as herein otherwise specified, all the monies and revenues …. shall be from time to time carried over by the said commissioners to their general fund, and by payments or investments made out of such fund … additional provision shall be made for the cure of souls in parishes where such assistance is most required”

Has Save The Parish made a submission to the current TFWG?

Yes.  In January 2025 we proposed an increase in Lowest Income Communities Funding of 25%.  Drawing attention to the legal basis of distribution of Church Commissioners’ funds (see above), STP wrote  “We would therefore like to suggest that morally the Triennium Funding Working Group be bound by the principle that it should have ‘particular regard… to the making of additional provision for the cure of souls in parishes where such assistance is most required’ as it comes to decide how to spend the grants of the Church Commissioners. This would mean that before it resolves on any additional spending, it must be satisfied 1) that it can discern how to identify which parishes most require assistance, 2) that those parishes have had sufficient additional provision.

“We know that the current funding arrangements, and the outworkings of the various visions and strategies across the Church of England have fallen particularly hard on the poorest parishes. Church Action on Poverty has shown that: 
70% of churches proposed for closure were in parishes classed as more than 90% urban;
40% of closures were located in the 10% most deprived parishes in the country;
In their study of Manchester, churches in the most deprived quintile are five times as likely to close as churches in the least deprived quintile.

“As such we would like to propose something simple and effective – the refinement and expansion of LInC funding by 25%.” 

How is the final decision made on distribution of funds?

It is the legal responsibility of the Church Commissioners’ Assets Committee to recommend how much to distribute having had regard to independent actuarial advice. The Church Commissioners’ Board then has the responsibility to make a recommendation on how the funds available should be spent, including how much should be distributed to the Archbishops’ Council. 

It is then the duty of the Commissioners at an Annual General Meeting to consider and, if thought fit, adopt the recommendations of the Board as to the allocation of such moneys as the Board may report to be available. The Commissioners are required to consult the Council before determining how much will be allocated to the Council and to have regard to any proposals made by the Council. 

It is the responsibility of the Archbishops’ Council, as charity trustees, to determine how to spend those funds distributed to it by the Church Commissioners in pursuit of the Council’s charitable objectives.

How much money was distributed last time?

Overall, the Church Commissioners intended to distribute £1.2 billion between 2023 and 2025, up by around 30% from the previous triennium.  GS 2262  They planned to maintain this level of funding in the subsequent six years (subject to investment performance, market conditions and future approvals).  In total, this would mean the Church Commissioners distributing £3.6 billion to frontline work of the Church of England between 2023 and 2031.  

Significant though this funding is, this represents only about 20% of total expenditure within the Church of England, the majority coming from the £1 billion of annual donations given in parishes.  See the CofE cash flow diagram.  

Read about the 2023 -2025 distribution here – GS 2262