- Kingdom Bank warned rising costs could cut a typical UK church’s income by a combined £22,000 a year
- Church gas and electricity bills of about £2,500 were expected to rise to £3,000–£4,000
- The bigger threat was falling donations as household incomes were squeezed
- The bank’s chief executive said the cost of living would hit churches harder than COVID
Rising energy costs and a squeeze on household finances could cost UK churches a combined £22,000 a year in lost income and higher bills, according to a report by Kingdom Bank, a Christian lender, Premier Christian News reported on March 9, 2022.
The bank said a typical church paid about £2,500 a year for gas and electricity, and expected that to rise to between £3,000 and £4,000. At the same time, the average UK household faced a £2,500 fall in annual disposable income, the largest drop since 1955, which was likely to hit donations.
Chief executive Paul Houghton said: “Our forecast is that the current rising cost of living will be a greater financial challenge for UK churches than the COVID pandemic.” He said the main concern was not utility bills but giving: “our expectation is that the really big impact will be from squeezed gift income.”
The warning came as many churches were still recovering from the pandemic.
Jamaican churches face the same squeeze whenever electricity prices rise or members’ incomes fall. A church building’s running costs, from light bills to insurance and repairs, have to be met from giving, and giving falls when households are under pressure. Solar panels, energy-efficient lighting, shared use of buildings and rental income from halls can all ease the load. Knowing the true annual cost of a building is the first step to keeping it open.
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