Church parishes are being merged in North Yorkshire by both the Church of England and Catholic dioceses to help combat a shortage of clergy.

The Catholic Bishop of Middlesbrough, the Right Reverend John Crowley, whose area stretches from Teesside to the Yorkshire Dales, and south to York and Hull, said: "We are short of priests and, as those who work so hard reach retirement age, we are bringing parishes together under one priest."

The Church of England's York diocese is also streamlining some parishes.

Communications director Martin Sheppard said the number of clergy is being cut by 21, to 279.

He said the diocese was also suffering a financial squeeze because of the re-valuation of clergy pensions. Clergy are even living longer than the rest of the population, said Mr Sheppard, resulting in the diocese facing paying an extra £1m in pensions in future years.

In the past five years, the giving by congregations has increased ahead of inflation, said Mr Sheppard.

"The Church is paying its own way," he said, adding that a number of parishes in the diocese had already merged and become united benefices.

Bishop Crowley said in his annual report that while collections increased slightly, the high cost of maintaining churches, halls and other properties was a major cost.

"The result is we had a loss of £367,000 before receiving legacies and property sales. For every £1 we received, we spent £1.12," he said

"For many years our priority has been the building and maintenance of our schools and the cost of implementing Government changes in requirements in education. This has meant essential work on our churches, halls and presbyteries has been delayed."