"So while we are inevitably facing the same financial difficulties as every other organisation, the diocese is in a much stronger position than some other dioceses and certainly stronger than we were in 2002.
“We face every increasing liabilities in the year ahead - not least the clergy pension contributions," he said. "But we are on a firm financial footing to face these challenges and liabilities that are beyond our control, because we have made the right decisions so far.
"The fact we can make choices is proof that we are heading in the right direction but we must not underestimate the challenges we face.
He said the diocese could not "keep passing increased costs to parishes and expect them to pay". Since 2003, the diocese has capped the increase in the parish share - that part of our budget paid for by our parishes - at four per cent per year. The budget for 2010 is still being finalised and will be approved by the Bishop’s Council later in the year.
“We live in very difficult financial times and the church isn’t immune from the difficulties facing the nation and the communities we serve," said Mr Hill.
"But I’m confident that the decisions we’ve taken in recent years and the commitment from the parishes and our congregations will help us through this turmoil.
"But we rely on the continued goodwill and generosity of our members to ensure we don’t slip back into the dark days we faced at the turn of this century.
"And our local churches rely on the generous giving of their members to ensure they are able to continue to make Jesus known to the communities they serve.
The Clergy Pension Scheme is a non-contributory defined benefit scheme providing a pension on retirement of up to two-thirds of the pensionable stipend at the point of retirement, plus a lump sum of three times the pension, depending on the length of service.
The current full service pension for parochial clergy is £13,093 per year plus a lump sum of £39,279. Parish clergy in the Diocese of Lichfield will receive a stipend of £22,315 this year - up four per cent on last year and slightly higher than the regional benchmark.
