THE cash-strapped Church of England York diocese is having to reduce its number of clergy by 22 in the coming year to save about £360,000.

However, the diocesan authorities hope to achieve the reduction through natural wastage in the form of retirements and enlarging parishes when vacancies occur.

Mr Martin Sheppard, the director of communications, said that at present the diocese had 301 people on its payroll including paid parish clergy and 20 administrative staff.

The aim in the next 12 months was to cut the number to 279. "There will have to be a very thorough and careful review," he added. "Any vacancies which arise will be scrutinised."

Mr Sheppard said the cost of clergy pensions was one of the biggest headaches. "It is not so much the cost of the pensions of the clergy already retired but the contributions for those still ministering."

In addition, said Mr Sheppard, retired clergy were living longer. "That is certainly the case compared with the rest of the population," he said. However, many of the retired clergy played a key part in helping to take services in the diocese.

The responsibility for pensions had switched from the Church Commissioners to the York diocese, adding about £1m a year to its overheads.

"We are living beyond our means," said Mr Sheppard. "But whatever happens, we shall continue to have a ministry in each of our 600 parishes."

An encouraging sign was that the number of people coming forward for ordination was increasing and a number of clergy were self-supporting in that they had other income which meant the diocese only had to pay expenses and not a stipend.