2025-08-31-accounts - The Methodist Church In Great Britain

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The Methodist Church in Great Britain Consolidated Report and Financial Statements for the year ended 31 August 2025

Table of Contents
Welcome from the Revd Dr Jonathan Hustler	2
The Methodist Church in Great Britain Trustees’ Report	3-43
Strategic objectives, aims and purposes of The Methodist Church in Great Britain	3
Public benefit requirement	3
Structure	3
Overview of the work of The Methodist Church In Great Britain	8
Key activities	8
Plans for the future	25
The environment	26
Remuneration of key management personnel	26
Fundraising activities	27
Financial review	28
Reserves policy	30
Investments	33
Risk management	34
Data protection	37
Going concern	37
Related parties	38
Statement of Trustees’ responsibilities	39
Independent Auditor’s report to the Trustees of The Methodist Church in Great	40
Britain
Consolidated Financial Statements	44-95
Statement of financial activities	45
Statement of financial activities – The Connexional Funds	46
Balance sheets	47
Cash flow statements	48
Notes to the Consolidated Financial Statements	49
Trustees and committee memberships	96
Reference and administrative details	98

Welcome from the Revd Dr Jonathan R Hustler

Brothers and Sisters

It is my privilege to introduce to you the annual report for 2024/25, which reflects the Church’s response to its calling to be a truly inclusive, evangelistic, growing and justice-seeking church. This report offers insight into both the financial resources of the Church and the vast range of its work, highlighting how it continues to live out its mission in today’s society.

This year marks the first full year of the Connexional Council serving as the trustee body of the Church. The Connexional Council’s key responsibilities include oversight and implementation of the vision, strategies, decisions and directions set by the Conference. A vital part of its work is to review the life of the Church and ensure its resources are used for where they can have the greatest impact.

This year’s report showcases a rich variety of activities, demonstrating how we have used our gifts and resources to enable us to be part of God’s mission to the world. This report is, of course, the latest chapter in the life of the church. As the pages show, ministers and laypeople are working together across the Connexion to continue and to develop the work of the Church. It is with deep gratitude to them all that we present this report.

The Revd Dr Jonathan R Hustler

Secretary of the Methodist Conference

The Methodist Church in Great Britain Trustees’ Report

Strategic Objectives, Aims and Purposes of The Methodist

Church in Great Britain

The activities covered in these financial statements fall within the work of The Methodist Church in Great Britain (‘The Methodist Church’ or ‘The Church’). The aim of The Methodist Church in Great Britain is expressed in its “Our Calling” statement:

“The calling of the Methodist Church is to respond to the gospel of God's love in Christ and to live out its discipleship in worship and mission.”

Public Benefit Requirement

The trustees of The Methodist Church have due regard to the public benefit guidance published by the Charity Commission in compliance with its duties under section 17 of the Charities Act 2011.

This guidance sets out two key principles:

The organisation must have an identifiable benefit.
The benefit must be to the public or a section of the public.

The Church exists, inter alia , to:

increase awareness of God’s presence and to celebrate God’s love;
help people learn and grow as Christians, through mutual support and care; and
be a good neighbour to people in need and challenge injustice.

The trustees consider that for these reasons the charity meets these public benefit requirements.

Structure

The Methodist Church registered as a charity on 20 October 2009 (charity number 1132208 – ‘The Methodist Church in Great Britain’ (MCiGB)) when it became necessary for excepted charities with a gross annual income over £100,000 to register.

The Methodist Conference (the Conference) is the governing body of the Church and, up to the end of August 2024 were the charity trustees (their names being publicly available on the Charity Commission website). From 1 September 2024 the Conference established a Connexional Council to act as the trustee body for the Methodist Church in Great Britain.

The entities included in this report are not a record of all the financial activities of the wider Methodist Church, as they do not include local church, circuit and district financial statements. The names of the entities included in this report, are listed on the group structure diagram in ‘Note 1’ of the financial statements on page 49 and include:

Table 1 – List of Consolidated Entities

Table 1 – List of Consolidated Entities
Cliff College	(a separately registered charity)
Cliff College Outreach Limited	(a separately registered company)
Cliff (Methodist) Developments Limited	(a separately registered company)
All We Can	(a separately registered charity)
Y Care*	(a separately registered company)
Southlands Methodist Trust	(a separately registered charity)
Methodist International Centre Limited	(a separately registered company)

*During the year, Y Care International ended its agreement with All We Can meaning that the Connexional Council was no longer responsible for appointing its Trustee body. As a consequence, Y Care International is no longer considered a subsidiary undertaking and has been deconsolidated from the accounts of MCIGB.

These financial statements are the consolidated financial statements for the Connexional Council and entities under its control. The above-named organisations have purposes that are consistent with those of the Methodist Church and at least 50% of their trustees are appointed by the Council, thus demonstrating a level of control.

Governance and Oversight

The Constitutional Practice and Discipline of The Methodist Church (2025 edition) Volumes 1 and 2 contain the governing documents of The Methodist Church. The Conference is the governing body of the Methodist Church and the authority under which the Conference acts is legally given by The Methodist Church Act 1976 and the Deed of Union 1932.The next ‘tier’ of authority is given by the Model Trusts in the second Schedule of the Act and the Deed of Union. These derive their authority from the Act. Thirdly, there are the Standing Orders and guidelines adopted by the Conference, which are far more detailed and easily changed, provided that they are within the limits prescribed by the Act, the Model Trusts and the Deed.

Much of the day-to-day work for which the Connexional Council is responsible is delegated to the Connexional Secretary and other members of the senior management group of the Connexional Team for matters relating to the objectives of the Connexional Team, and to local trustees in the case of the consolidated entities. These local trustees are accountable to the Connexional Council.

Prior to 2024/25, the managing trustee of the MCiGB was the Methodist Conference, a body of 225 members that met annually. It delegated the day-to-day oversight of the charity to the Methodist Council (a representative body of c50 members). Since September 2024, the managing trusteeship of MCiGB has sat with the Connexional Council, a body of 18-22 trustees appointed by the Conference. The Conference remains the governing body of the Church as explained below. The governance structure of the MCiGB for 2024/25 is presented in the following diagram.

The Methodist Conference (Governing Body)

The Connexional Council (Charity & Managing Trustee)

----- Start of picture text -----
Audit & Risk Assurance
The Resourcing Committee Ministries Committee Mission Committee
Committee
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The Methodist Conference

The Conference is the governing body of the Methodist Church and its particular responsibilities are set out in Section 18 of the Deed of Union. In summary, the Conference is responsible for:

(i) doctrine;
(ii) legislation;

(iii) connexional mission and policy;
(iv) connexional polity;
(v) the formation, admission and discipline of ministers, officers and members;
(vi) the stationing of ministers and probationers, and
(vii) the connexional budget and allocation of district contributions.

The Conference meets annually in Representative and Presbyteral Sessions (and there is, in addition, a Conference Diaconal Committee). The Conference is a representative body of 225 members comprising ministers and laypersons from the 23 districts of The Methodist Church as well as other sections of the Church.

The Connexional Council

The Council met six times during 2024/25 and consists of 18-22 members most of whom hold office for three years with the option for a three-year extension. Its general powers and responsibilities are set out in detail in Standing Orders with its overall role as set out below.

To enable the Church to fulfil its calling, the Council shall seek to implement the vision, strategies, decisions and directions set by the Conference.
In partnership with others in giving spiritual leadership in the Church, the Council shall keep in constant review the life of the Church, so as to assist in making its work and witness more effective. It shall receive and consider any representations which the Chairs’ and Warden’s Meeting (a meeting in line with Standing Order 294 of the Chairs’ of the Districts and the Warden of the Diaconal Order) may from time to time submit upon matters of connexional or district concern.
In fulfilment of these responsibilities, the Council shall help to ensure that the Conference’s decisions and objectives are implemented in a timely, cohesive and considered manner, and shall bring such proposals and reports to the Conference as will assist the Conference to determine the future policy and objectives of the Conference.

The Council has agreed its key objectives would align with the four headings of Our Calling:

WORSHIP - Ensuring our worship and ministry is effective, relevant and gives glory to God. LEARNING & CARING - We are an inclusive Church SERVICE - We are a justice-seeking Church EVANGELISM - We are an evangelistic people

The Resourcing Committee

The Committee’s role is to advise and assist the Connexional Council, and where required act under delegated authority, in fulfilling the Council’s responsibilities for the strategic oversight and use of resources with regard to personnel, finance and physical assets which are within the purview of the Council. It shall further advise and assist the Secretary of the Conference and the Connexional Secretary as they devise strategic policies for presentation to the Council or the Conference.

The committee is responsible for:

i. the presentation to the Conference for its approval, the budget for Connexional funds
ii. advising and enabling the Council to fulfil its legal duties and obligations as an employer
iii. oversight, on behalf of the Council, of all Connexional funds
iv. making recommendations to the Council, to be brought to the Conference, as to ministerial stipends, allowances, and related matters; producing guidance on grants, loans and allowances for minsters; making recommendation as to any other terms under which ministers and probationers serve within their covenant relationship with the Conference.

v. oversight of Connexional property guidance; advise the Council concerning properties for which it is managing trustee.
vi. overseeing the work of the Listed Building Advisory Committee.
vii. overseeing the partnerships with the Central Finance Board, Trustees for Methodist Church Purposes, the Joint Advisory Committee on the Ethics of Investment and entities consolidated in the accounts of MCiGB.

The Audit and Risk Assurance Committee

This is a committee of the Council. It has powers to require any appropriate staff members of the Connexional Team to attend its meetings. Meeting three times in the year it has responsibility for:

advising the Connexional Council on the appointment of the external and internal auditors;
reviewing, with the auditors, the consolidated financial statements;
reviewing and monitoring the effectiveness and appropriateness of procedures relating to risks;
reviewing the effectiveness of the financial and other internal control systems with regards to monies and other assets for which the Council is responsible;
approving the annual risk-based internal audit plan, receiving internal audit reports, regular progress reports and risk updates; and
submitting a report of each meeting to the Council.

Other Oversight Committees

The Ministries Committee, which reports to the Connexional Council, exists to enable the Church to develop and maintain a strategic vision for the use of ordained, accredited, commissioned and informal ministries and offices, and is accountable for developing and supporting programmes and processes for candidacy, training, oversight and related matters.

The Mission Committee, which reports to the Connexional Council, exists to ensure the mission and activities of the Church are in keeping with the response to Our Calling and agreed priorities. It enables the Church to take up various aspects of Mission as expressed in Sections 32 to 35 of Part 3 of Standing Orders. It explores the challenges and opportunities faced by the Church for mission, local and global, in the multi-ethnic, multi-cultural and multi-faith context that is the society today.

The Safeguarding Committee

Following the governance changes on 1 September 2024, the Safeguarding Committee is appointed by, and reports directly to the Methodist Conference, not the Council. It has wideranging responsibilities for promoting safeguarding practice and safe recruitment across the whole Connexion, including the Council. The strategic and oversight functions of the Committee are:

(i) to promote effective safeguarding practice and safe recruitment across the Connexion;
(ii) in response to developments in safeguarding practice and to concerns raised by the committee in fulfilling its functions, to report and make recommendations to the Conference and, as required, to the Connexional Council to enable the council to fulfil its trustee responsibilities;
(iii) to ensure the sharing of information and close working relationships with statutory authorities and other denominations;

(iv) to be available for consultation by those members of the Connexional Team whose responsibilities include the Church’s policy for safeguarding children, young people and vulnerable adults;
(v) to carry out such other functions as the Conference by Standing Order or otherwise may direct or request.

Other Oversight Bodies

A comprehensive list of the subsidiaries whose financial statements are included in The Methodist Church Consolidated Financial Statements is provided on page 63. For each of them, a local governance committee or group of managing trustees is appointed by the Council to oversee the entity, within the terms of responsibility delegated to them by the Council. Ultimate control in all these cases resides with the Council. Through a governance scrutiny process overseen by the Resourcing Committee, the Council aims to monitor standards of governance in all the entities that are accountable to the Council.

The Council appoints members to the various trustee bodies, on the recommendations of existing members and based on a reasoned statement provided for each nominee. It follows a selection process that involves a skills audit and advertisement for trustees with the appropriate skills and expertise. Appointments are normally for a six-year period, but each trustee body will have its own governing document that will set out the terms of appointment and re-appointment. The Council reviews and re-confirms the appointment of all the trustees to each of these bodies on an annual basis regardless of the term of office for each individual.

All members of the Council underwent induction to familiarise themselves with the aims and work of the charity, and to ensure they understood fully their responsibilities as trustees and the organisational expectations in terms of their commitment. As part of the induction programme, trustees were provided with constitutional, governance, financial and organisational documentation. Trustees receive regular updates and are made aware of relevant events and training opportunities.

Overview of the Work of The Methodist Church in Great Britain

The calling of The Methodist Church is to respond to the gospel of God's love in Christ and to live out its discipleship in worship and mission. Most of the work of the Church occurs within or is associated with local churches throughout the country. These local churches do not form part of the accounts of the MCiGB, but the activity of the wider organisation beyond the scope of MCiGB encompasses:

3,466 places of worship, with around 125,504 members;
the work of around 1,363 active Methodist ministers;
pupils enrolled in 82 Methodist schools;
innumerable hours of voluntary time given by our members, local preachers, office holders and others in the community, contributing to the diverse activities of local churches.

Without the support of volunteers across the connexion the Church would simply be unable to live out its calling to respond to the Gospel of God’s love in Christ. Specifically in relation to the activities covered by the MCiGB in this report, we are immensely grateful for the 774 volunteers (note 12 in the accounts) who serve on a whole range of Connexional committees, working groups, and other bodies that support the life of the Church. The Methodist Church is very grateful for all who contribute financially to the work of the Church through whatever means.

This report cannot capture in detail the breadth and depth of the Church’s work. In the section below is a list of a range of activities from around the Connexion as examples of that work.

Key Activities

Organisation of the work

The Methodist Church in Great Britain, in response to its calling and in pursuit of the strategic objectives shown at the start of this report, organises its work in the following seven key areas:

Building Communities
Children, Youth and Families
Evangelism and Growth
Global Relations
Ministries and Learning Team
The Conference, Council and Governance
Property

Each of these is reviewed below.

1. Building Communities

The Methodist Church continues to work ecumenically where possible. The Methodist Church continues to play its full role within the ecumenical bodies: Churches Together in England, Churches Together in Scotland, Cytun Churches Together in Wales and Churches Together in Britain and Ireland. It also keeps bi-lateral ecumenical relationships with several denominations. To name but a few: with the Church of England, the United Reformed Church (URC) and the Roman Catholic Church. The Methodist Church shares much in common with the URC, working together in many Local Ecumenical Partnerships. With the Roman Catholic Church, the National

Dialogue Commission continues its work, and the Methodist Church has contributed to the Synodical process that the URC is engaged with.

The Joint Public Issues Team (JPIT) has continued to support the Methodist Church to work for justice and peace through listening, learning, praying, speaking and acting on public policy issues, alongside our partners in the Baptist Union of Great Britain and the United Reformed Church, and our associate partner, the Church of Scotland.

Following the General Election, JPIT encouraged local churches to begin building relationships with new MPs. It launched a Constituency Action Network to offer dedicated support and coordination in this task, and held regular webinars for members of interested churches, as well as equipping network members to engage with MPs around asylum and climate policies.

As part of its commitment to be a justice-seeking Church, the Church engaged in advocacy campaigns around its justice priorities. In a context of rising poverty in the UK, through the Let’s End Poverty movement it coordinated the ‘Dear Prime Minister’ campaign, which included an event in Parliament where people with lived experience of poverty shared their experiences and hopes. Sir Keir Starmer described their stories as “honest, powerful and important. They hold up a mirror to our country.” Follow up meetings resulted with government ministers. The Church also coordinated two major multi-faith letters calling for a bold, ambitious and properly funded child poverty strategy, and responded to proposals to cut and reform disability benefits.

Church leaders called for additional funding to address climate loss and damage ahead of the COP29 climate summit and issued a statement deeply lamenting the government’s decision to make further cuts to the UK’s international development budget. In July, church members were mobilised to lobby MPs about the importance of action on the climate emergency.

Amid political debates around migration, the Church urged a fair and compassionate approach which recognises that at the heart of the matter are people on the move, who are often highly vulnerable. The President and Vice-President of Methodist Conference spoke out with other faith leaders about the divisive language used in launching the government’s Immigration White Paper. A film and other resources enabled local churches to mark Refugee Week and Sanctuary Sunday by reflecting on what it means to be part of a welcoming community, while briefings and toolkits equipped people to raise concerns with MPs.

JPIT helped church members to engage with debates about other contemporary public issues. New technologies are changing the way in which war is fought, and advances in artificial intelligence and space technology are opening up new domains of conflict raising new questions of ethics. A suite of resources on the Future of Arms, including theological reflections, equipped people to engage in discussion and advocacy with decision-makers about these vital issues. In the Beckly Lecture at Methodist Conference, Professor Anthony Reddie offered a postcolonial critique of British Methodism, under the title “Whiteness is the Sea, not the Shark”.

In response to a wave of protests around accommodation hosting people seeking asylum, practical and pastoral resources were offered for those who found themselves on the frontline. JPIT also continued to resource local churches, members and leaders in their ongoing engagement with issues of justice and peace, through regular topical blogs and webinars, and podcasts including ‘Politics in the Pulpit?’ a weekly lectionary-based preaching podcast.

The Publishing Services team provides commissioning advice and editorial and design support to the Connexional Team, working closely alongside the Communications Digital Team. The teams continue to deliver ‘digital first’, encouraging colleagues to review, reshape and add to online content before considering making printed resources. To support this focus, a new member of staff has been recruited to the Publishing Services team due to the volume of digital content and

turn round times required. Any proposals for printed materials require Senior Management approval to ensure we keep in line with the Church’s commitments to ‘net zero’ where possible. The Team’s work ranges from the updating of several ‘handbooks’ to support a variety of church volunteer roles, to creative seasonal campaigns, such as the Christmas campaigns. The campaign, ‘Hush the Noise’ supplied churches with resources, including invitation postcards and worship resources for Christmas 2024. In 2024/2025, an in-depth consultation with users and stakeholders led to a far-reaching review and redesign of the best-selling Methodist Prayer Handbook , with additional digital material being made available to link to and enhance the content of the printed book. The Singing the Faith accompaniment CD set was reprinted, which represented a significant investment in the production of stock for sale. It is in significant demand to help resource the increasing number of churches that do not have regular pianists or organists. The most significant investment in unpriced print continues to be the production and distribution of c55k copies of each of three issues of the connexion magazine.

2. Children, Youth and Families

3Generate : The Good Faith Partnership were commissioned by the Connexional Team to conduct an appraisal of the work it undertakes to support Children and Youth work; in particular, to look at the 3Generate event and its impact of local work. The brief was to look at the impact of work in the light of the stated vision and direction as set by the Mission Committee. The results of this review encouraged the Connexional Team to ensure that the event is more clearly focused on discipleship and had a deeper clarity of programme focused on living a Methodist Way of Life.

The 2024 event was the largest 3Generate to date and allowed 1620 children and young people to come together along with 520 leaders in the annual Methodist Children and Young people’s Assembly. This saw an increase of 350 children and young people compared to those attending in 2023.

Mini-3Generate was held where 70 children aged 4 - 7 attended together with their parent or other significant adult.

Volunteering is key to the success and delivery of 3Generate and the event in 2024 was supported by 310 volunteers from across the Connexion along with staff who made up the “Delivery Team”. This represented a growth of 70 in number of volunteers and contributed to the success of the event. We invest in our volunteers with training, and they incur no personal financial costs. We cover the costs of travel, provide food and team clothing. All our volunteers have completed Unconscious Bias training, Safeguarding, Accessibility Training and attend a team building and briefing day.

3. Evangelism and Growth

In addition to its ongoing work with leaders across the Connexion, the Evangelism & Growth Team has spent this year preparing for the Methodist Conference’s extension of God for All: The Connexional Strategy for Evangelism Growth from 2025/2026 through to 2032/2033. This preparation has involved:

Consulting with every District Chair and team and addressing the entire gathering at both Superintendents Conferences to receive wisdom, co-create, and align the shared work;
Focusing this aligned, strategic work on the four priority areas that the Church has called for – Discipleship, Evangelism, Growing Churches, and New Churches ;
Ensuring that all related programme, resourcing, and accompaniment is focused on supporting local churches as they change, grow, and are part of the transformation of their communities

Doing things differently – We believe that if we want things to be different across the Church, by God’s grace we must do things differently. Here are some key highlights from our commitments to do things differently:

Discipleship :

We are helping churches claim the joy that responding to the Gospel involves making more followers of Jesus Christ . Where we used to have one team that worked on adult discipleship and another team that worked on children, youth, and family ministry, we have integrated this work into one Discipleship Team to ensure that the Methodist Church’s discipleship pathway, A Methodist Way of Life , continues to develop as a theologically-coherent, whole-life approach for multi-generational faith formation in every circuit and church across the Connexion.
We have woven through the entire strategic plan a commitment to significantly increase the number of children and young active disciples in the Methodist Church.
We have consultatively designed and piloted On the Way , a new approach to spiritual exploration and membership formation focused on people with little or no previous experience of religious community and faith practice.

Evangelism

We are equipping churches to become more evangelistic by doing evangelism . At local and national festivals – from community fetes to local agricultural festivals, to the Edinburgh Fringe and Silverstone Grand Prix – local Methodists have discovered the joy of evangelism as a spiritual practice. Our learning has been through our practice in the world, where people are – in this case, through literally tens of thousands of spiritual conversations with religiously-unaffiliated people in parks, fields, city streets, protests, and parades. In response to more local churches asking for context-specific help, we’re co-creating new approaches to evangelism at the intersection of justice, diverse ethnicities and cultural traditions, children and youth, students, and sport – all within the Methodist Church’s call for a consistent evangelistic call to action to bind us together across contexts.

Growing Churches

We’re learning with churches that t ransformation happens through encounter with God and with others. We’ve helped existing churches rediscover and reclaim growth as a multi-dimensional commitment to missional openness, spiritual exploration, and hope for a numerical increase in lives changed by the Gospel of Jesus and community in Christ’s name. We’re dismantling the experience of mission planning as a tick-box exercise and accompanying churches and circuits into growth as a practice of spiritual discernment, that involves letting go and innovating together.
A refreshed edition of Our Church’s Future Story was co-created, published, and shared, for leaders who long to see their church grow spiritually, put down deep roots in God’s love, grow missionally, building strong relationships in your community, doing justice and sharing faith.

New Churches

We are coaching circuits to start and grow new Christian communities as a new normal. With a grass-roots model of learning from recently launched New Places for New People in their districts, churches are leaning into pioneering and planting across a wide diversity of expressions. We have provided access to excellent coaching, financial resourcing, staff accompaniment and support in every district, and a Methodist Pioneering Pathways formation and transformation process for pioneers that is growing in number and diversity.
We have also begun strategic planning with district leaders to envisage a more intentional cross-context approach to launching addiction recovery churches, student

churches and churches in schools, churches in estates and housing developments, and other churches at the economic margins across the country in a joined-up way.

Global relationships

The Methodist Church in Great Britain (MCIGB) has over 100 partner churches and organisations in over 65 countries across the globe and the continuing development of our relationships is overseen by the Global Relationships Committee (GRC).

A mission partner is someone who feels called by God to serve in another part of the world church. They must be a Christian and be willing to go and serve wherever God directs usually for a period of between one and six years, accountable to the receiving church. Three mission partners completed their service on 31 August 2025. Two have returned to Britain and one has transferred to General Board of Global Ministries as one of their missionaries. Partnerships with United Methodist Church Germany and the Church of Scotland in supporting four mission partners will end on 31 December 2025. The MCIGB continues to have two Mission Partners, and the Team also support the Minister appointed to the Methodist Liaison Office in Jerusalem.

A celebration of mission, especially lay Mission Partners, took place in partnership with the Methodist for World Mission at their conference in May 2025. This was in part to fulfil the Notice of Motion 2023/104 which states that that, ‘The Conference asks the Global Relationships Committee to plan for appropriate ways to celebrate the contribution of mission partners in the coming year.’ The Connexional team promoted the celebration with support from the Communications, Heritage and Global Relationships Teams. The Vice-President of the Conference and the General Secretary of the World Methodist Council were present at the weekend.

As well as continuing to support Ordained Mission Partners who commit to serve for a minimum of three years, the Global Relationships (GR) team also run several other programmes for people to serve the global Church. One Global Mission Fellow (GMF) serving in MCIGB from Malawi completed their service July 2025, another GMF from Belize has taken up the enriching placement at Wesley’s Chapel and Leysian Mission, London. We are encouraging young British Methodists between the ages of 20-30 to take up placements in this programme.

Under the Encounter Together programme we have:

Organised ‘Encounter Ghana’, a mixed group of MCIGB Connexional team leaders and Cliff College year students, gaining insights into evangelism and justice;
Supported an incoming visit from the Opera per le Chiese Evangeliche Metodiste in Italia (OPCEMI), including a visit organised by OPCEMI, ‘Following in Wesley’s Footsteps’, for a mixed group of young adults from Italy and MCIGB.
Supported participation in group trips organised by partner organisations;
Supported two young adults, one from Britain and one from Palestine, to take part in the World Methodist Council Young Adult Pilgrimage for Peace;

There are currently two ministers seeking sabbatical placements in 2025/26, and two persons will be travelling under the Specialist Skills programme to support the Methodist International Church Hong Kong, in the area of safeguarding.

There are currently eight active District Twin relationships. As some of the Districts in the Church have merged to firm larger Districts, this has meant that a number are currently negotiating the widening of the partnership or navigating being a District that holds multiple links.

Through the Church CAN programme, the Global Relationships Team and All We Can work together with Partner Churches, enabling the strengthening of their capacity and effectiveness as agents of change in their local context. This work is entering its last year of current funding with future plans for this work under discussion.

The first iteration of Global Networks for Mission focusing on Land Rights and Social Justice was successfully completed. The theme was identified by partners, and seven roundtable meetings were held with 47 participants from 19 countries, representing 14 partner churches and 11 partner organisations. A six-part resource was produced in both English and Spanish combining in-depth practitioner interviews and theological reflections curated by the co-Chairs. The resource can be found here: Global Networks for Mission - The Methodist Church

We received representatives from 14 of our Partner Churches at this year’s Methodist Conference and had fruitful discussions at a 2-day Pre-Conference Consultation, hearing from partners, connecting with MCIGB Chairs of District, consulting on migration and reflecting on the draft Global Relationships Strategy.

We have engaged partners in the Methodist Church in the Caribbean and America’s (MCCA) and partners in West Africa, concerning reparatory justice. Conversations and work are beginning on a theological basis and historical review, with a view to provisionally agreeing concrete actions in partnership as part of the work of reparatory justice to present to conference in 2027.

Appeals

The Gaza and Lebanon appeal remains open in partnership with the United Reformed Church (URC) and All We Can. To September 2025, approximately £90K has been distributed to the Princess Basma Centre which specialises in occupational therapy, physiotherapy, and speech and language therapy, the Department of Service to Palestinian Refugees (DSPR) which is part of the Near East Council of Churches (NECC) and the URC partner the National Evangelical Synod of Syria and Lebanon. Funds are distributed working in partnership with the United Methodist Church, United Methodist Committee on Relief.

The funds remaining in the Ukraine joint appeal funds, held by All We Can, are being distributed to work in Ukraine and Romania as the conflict continues. These funds were originally set aside for re-building projects, but the ongoing needs caused by the extended conflict has led to the decision in collaboration with All We Can to release these funds for immediate humanitarian relief. The Global Relationships Team and All We Can are working with United Methodist Church partners in Ukraine, Romania and NGO partners to distribute these funds.

Grants

We continue to honour our commitments to the existing approved National in Mission Appointment and Students and Leaders Training for the agreed duration. Grant giving processes are bringing the World Mission Fund down to its reserve level, in line with Charity Commission guidance.

Regional Grants are a combination of Mission Initiative Grants, small grants to support a Partner in a new mission project and Capacity-building Grants given to Partners for building Capacity, leadership and long-term stability. No further grants are to be approved. An overview from 2022-2025:

Total approved grants £6.4million
Total disbursed to Aug 25 £4.9 million
Remaining balance £1.5 million

Solidarity Grants are a grant offered to show our support to a Partner in a crisis or a few other limited criteria. The Solidarity Grants (budget £250k: total disbursed £217k) this year were used to support:

families in Myanmar affected by the earthquake,
flood victims in Botswana and Sri Lanka,
feeding programmes in Venezuela,
mission work with migrants from Africa in Portugal,
emergency gathering of Religious and Lay Leaders and Key stakeholders to address increased Interreligious violence in Togo and the Sahel region,
community suffering from Jihadist attacks and insurgency,
supporting the church in Haiti during the continuing political and social crisis,
Rwanda property crisis
funds to enable 4 national church leaders in the Pacific to travel for the Methodist Consultative Council of the Pacific.

Special Grants , a small non-emergency grants stream, approved grants for seven partners for a total of £24K.

All We Can, the Methodist relief and development agency, works in partnership with communities and local organisations to bring lasting change. In 2025, we launched our 2030 Strategy, setting a bold direction for the next decade: shifting power to local churches and partners, scaling locally led solutions, and enabling communities to lead and drive the change they seek. This strategic focus complements the Methodist Church in Britain’s vision of becoming a justice-seeking church.

All We Can’s Long-Term Development and Humanitarian Assistance work

All We Can continued its Charity Awards-recognised partnership approach with 23 NGO partners across Ethiopia, Uganda, Malawi, Zimbabwe, Sierra Leone, and Liberia; directly benefitting 34,831 people and indirectly reaching 801,019 through partners long term development work. These partnerships continue to offer local organisations long-term, flexible funding that enables partners and communities to plan against their own strategies and priorities. All We Can’s long term development partners’ work on a range of thematic areas achieved notable outcomes, some of which are highlighted below:

100ha of degraded land has been rehabilitated in Zimbabwe and Ethiopia
Just under 100 malnourished children received supplementary feeding from our partner AHRRA, with a 92% recovery rate in Ethiopia
In Uganda, the Sustainable Multi-Sectorial Action for Development’s programme resulted in the number of households with an acceptable Food Consumption Score (FCS) rising from 52% to 99%.
One year after completing livelihood support programme, 77% of teenage mothers supported by our partner Concern for Children and Women Empowerment (COFCAWE), are earning a living from acquired skills.
Over 1.08 million tree seedlings planted across Malawi, Ethiopia and Uganda

“My name is Precious Mudenda, and I am a proud member of the Siachilaba Women's Forum and a skilled weaver with the Bunsiwa group. Despite the devastating drought that hit our community in 2024, I was fortunate to have been less affected thanks to Zubo's timely intervention. Zubo's training on business management skills and record keeping empowered me to take control of my finances and make informed decisions. One of my greatest joys is seeing my children thrive. With the profits from my business, I was able to enrol one of my sons in a private school, where he has excelled academically. I have also invested in my own future by purchasing roofing materials to complete my unfinished house. This project will be completed early next year, and I am excited to have a safe and secure home for my family. I encourage all women to take the first step towards economic empowerment by starting small businesses. With discipline, dedication, and the right support, we can achieve greatness and create a brighter future for ourselves and our families.” - Precious Mudenda (Binga, Zimbabwe)

All We Can’s partnership also focuses on supporting partners to strengthen their own organisational resilience. Given the increasingly challenging environment for civil society and a difficult funding landscape a key aspect of this is providing technical support to partners proposal development. 54% of proposals partners submitted were supported by All We Can, with a reported success rate of 38%. Emergency responses include supporting partners in Ukraine & Poland, Syria, Haiti, Somalia, Gaza & Lebanon, Bangladesh, Myanmar, and Malawi in response to Cyclone Freddy. Through these efforts, we continue to strengthen locally led solutions, deepen church and community collaboration, and provide practical pathways for communities to overcome poverty and injustice.

In October 2024, the ChurchCAN Conference in Johannesburg brought together leaders from four global Methodist partner churches, providing a vital platform for sharing experiences, strengthening leadership, and exploring strategies for self-sustainability and community transformation. Discussions on youth engagement, inclusive leadership, and practical tools for mobilising local resources are already shaping partners’ work towards greater resilience and impact.

The Methodist Church of Southern Africa (MCSA) in Lesotho has made significant strides under ChurchCAN. In 2024/25, more than 25 church leaders and lay representatives from six circuits participated in intensive workshops on leadership, clergy support, organisational development, and strategic planning. These efforts resulted in a clear five-phase Strategic Plan (2024–2030), strengthened local ownership, and a roadmap towards a more resilient and self-sustaining church. The next phase will focus on leadership training, youth and children’s ministry development, and equipping circuits with the skills and structures needed for long-term sustainability.

The Methodist Church in the Caribbean and the Americas (MCCA) has strengthened Connexional structures and built momentum for renewal across seven out of eight Districts. Over six months, 237 members, from Jamaica, Guyana, the Leeward Islands, and the Bahamas/Turks and Caicos, contributed to a survey on e-communications, shaping strategies to improve ministry efficiency and reduce travel costs. MCCA Youth is playing a more active role in the implementation of the Unified Strategic Direction. This is reflected in their representation on each Pillar Team and the Steering Committee. MCCA Youth has taken responsibility for implementation of the “Know Your Church” initiative, producing two children’s activity booklets, a Connexional question bank, and website updates.

All We Can has reignited its partnership with the Church of North India (CNI), focusing on rebuilding resilience after a period of political scrutiny and disruption. The ChurchCAN programme will support clergy facing financial and emotional hardship, provide access to expert local advisory input and legal support, build a wider solidarity network to confront persecution, and enable logistical support for diocesan operations. CNI plans to host inter-diocesan conferences, facilitate exchange programmes, and develop local networks, laying the foundation for a more united, interdependent church ready to respond to ongoing challenges.

The Methodist Church Sierra Leone (MCSL) officially graduated from the ChurchCAN programme in early 2024 but continues to receive accompaniment from All We Can’s Country Representative in Freetown. MCSL is actively implementing its latest Strategic Plan, with a special focus on building financial sustainability, while participating in quarterly learning and reflection sessions with All We Can’s Sierra Leone partner network. This ongoing support strengthens organisational capacity, encourages peer learning, and ensures sustainability of strategic initiatives across the church.

5. Ministries and Learning Team

Over the course of the year, we have successfully appointed a Director of Ministry Learning to work alongside the Director of Ministry Development. Together they have been working with the Head of Ministries and Learning to review ways in which the work across the Ministries and Learning team might be better integrated to more effectively support all those in lay and ordained ministry across the Connexion. Work will continue this into the next Connexional year.

Leadership Development: The Ministries: Vocations and Worship (MVW) Team continues to undertake significant leadership development support for both lay and ordained Methodists. For example, a member of the team supports the Leadership Learning Space which runs across eight sessions, each carefully curated to explore key aspects of leadership, including vision casting, decision-making, nurturing others, and personal growth; participants engage with experienced facilitators, share insights, and grow alongside peers. Additionally, the team leads a year-long hybrid induction course for New Superintendents, as well as the Superintendents’ Conferences in Oxford and Blackpool, which were exceptionally well-attended, with very positive evaluations, in 2025. There has been significant development in leadership development support for District Chairs in their first three years in the role, with a focus on equipping leaders with capacity to lead in a rapidly changing world. All new District Chairs have a longstanding two day induction; this is supplemented by two days’ change management training. Additionally, in 2024/5, for District Chairs in their first three years in role, a 12-month asynchronous online course has been developed, exploring Christian leadership, along with a monthly online leadership development space. Finally, the MVW team has worked with The Windsor Leadership Group to develop a bespoke programme for District Chairs, with input from leaders in different fields including the former First Sea Lord of the Royal Navy, an engineer who has led large projects across a variety of sectors, and former charity CEO. Additionally, small group support work has offered the opportunity to reflect on leadership in context. During the year, the MVW team has given careful thought to how leadership development might be extended, and a pilot for Senior Leaders’ Discernment and preparation is being undertaken in 2025/26.

Vocational Flourishing: During the year the Vocational Flourishing Officer role has been introduced into the MVW team. Its purpose is to strengthen the Ministries resource and complement the work of the well-being team by focusing ‘upstream’ on support, resources and interventions that might effectively prevent exhaustion in ministry and encourage the likelihood of flourishing for those living their calling in ministry. Relationships prove key to flourishing, be those within our locality, the broader institution, as well as mentorship and friendship equally have a significant impact when there are challenges. The role of Vocational Flourishing is to ensure there is a dialogue between the institutional and the personal, seeking the balance of both.

To date, much of the work has been in the form of multiple conversations with colleagues across the Connexion, seeking to explore views on flourishing and wellbeing, the conversations aim to take ‘an institutional pulse’ on current pinch-points and priorities on this topic. A key focus has been on broad representation, which recognises that marginal experiences might be missed. As one would expect, there are multiple narratives emerging that overlap and drive the conversation. A key starting point is a theological foundation for well-being; offering broader engagement for all, not only those facing difficulty. This facilitates steering the conversation away from a ‘leaky bucket’ approach, of wellbeing focusing on ‘repair and refill’, whilst acknowledging the reality for those who are struggling and find their wellbeing declining or are overwhelmed.

Following extensive research and consultation, a draft strategy is currently in progress. One strand of the proposed strategy is to bring long-term systemic change across the full journey of ministry, and the second aspect offering access points to resources and training for those currently in post. All of this to be underpinned by building relationships with districts and relevant

networks, which has already begun, and then offering training shaped by local needs and approaches. A visual of the draft strategy is linked to below. Vocational Flourishing Draft Strategy

The fruit of systemic change will be ministers reporting improved results on their wellbeing, and indicators that there are conscious choices being made to attend to it, following a pathway from the beginning of their vocational journey that offers regular opportunities to engage and access support and resources; promoted as essential, rather than optional. A key goal would be normalising this engagement on well-being, where self-efficacy goes hand in hand with structured offers of support providing opportunities for reflection, re-evaluation and access to coaching or support. As ministry changes and grows, a culture change is needed that recognises that this approach should be foundational and mandatory, another aspect of honouring vocation. A steering group will be set up to monitor this work.

Review of Learning for Ministry: At the 2024 Conference, a review of the learning for accredited lay and ordained ministry was approved, and the Terms of Reference were subsequently agreed by the Ministries Committee. The consultant, Susan Martin, started work in November 2024 and the Head of Ministries and Learning, Richard Armiger, has met with her fortnightly to review and monitor progress. The review was conceived as having two stages: a period of consultation with an initial interim report (which was presented to the 2025 Conference) and further consultation with a wide range of stakeholders across the Connexion. Based upon the exploratory nature of its objectives, the review is being approached in an open, collegiate and transparent manner, framed as an opportunity for the MCIGB, the institutions that provide learning, the Connexional Team and a wider set of stakeholders to contribute. The review will be assessing the efficacy of learning being offered and the underpinning viability in the medium to long term, with a deliberate future-focus. Over 80 conversations have taken place, many one-to-one meetings and also, some group meetings which has provided a weighty body of evidence about the views of stakeholders across the Church. In addition, an all-day meeting was held with the Learning Institutions and others from the Connexional Team at Methodist Church House in July 2025. The consultant has visited the Queen’s Foundation and Southlands College and will visit Cliff College in the Autumn.

Within the two main themes of the review, efficacy and viability, five supporting areas are being considered. The efficacy review looks at training priorities (as set by the Conference), criteria and competencies for lay and ordained ministry, and current circumstances of ministry. The viability review considers the position of the HE Sector and budget/financial pressures. The scope of the review has broadened naturally from the consultation conversations as the review has progressed. Work is now underway to finalise the consultation conversations and reviewing all the captured data so that the initial draft can be produced for the final report that will be presented to Ministries Committee in February 2026. A Steering Group has been appointed to facilitate an open and collegiate review and to monitor the ongoing progress of the review leading up to the 2026 Conference.

Local Preachers (LPs) and Worship Leaders (WLs): The year 2024/5 ended with the retirement of the longstanding Ministerial Development Officer for Preaching and Worship Leading, who worked tirelessly across nine years to support, and advocate for, the community of Worship Leaders and Local Preachers. Positively, the number of LPs starting training was higher in 2024/5 than 2023/4 with 134 preachers enrolling on the Worship: Leading & Preaching course (WLP). A sharp focus for 2024/5 has been to ensure that routes through WLP are as accessible as possible, such as in-person training at different venues across the UK. Additionally, a new accessibility toolset has been introduced on the WLP course, called ReciteMe. This provides state-of-the-art tools allowing adaptation of screen presentation (colour, contrast, text spacing etc.) together with audio transcription of textual content and specialist tools such as screen masks, magnifiers and focus aids. In addition, ReciteMe provides real-time translation facility in some 200 languages. This is proving helpful for trainees for whom English is not their heart

language. As well as this, the legal process for establishing a valid Trust Deed for the Necessitous Local Preachers’ Fund is nearing completion after several years’ work. Finally, following a number of memorials to the Conference, a full review of WLP3, which has been in place for over 10 years, will now take place to ensure that it the training for, and resourcing of, Worship Leaders and Local Preachers is appropriate and of high-quality in the future. The worship team within MVW is being reconfigured, to respond to the strategic priority in God for All 2025-32 and a team of three will lead this work.

The MVW team has worked closely with the Methodist Schools Academies Trust (MAST) in 2024/5. In order to join up the work of the Methodist Church and 66 Methodist state schools more effectively, and realise the strategic objectives for schools set out in both the Transforming Lives strategy and God for All 2025-32 , groundwork was done for a role of Director of Methodist State Schools to work within The Connexional Team.

Working across the Connexional Team and wider Church: The MVW team continued to be involved in many cross-team projects across 2024/5. These included:

Working with the Director of Environmental Engagement to co-lead the work of the Hope in God’s Future review group, and co-writing the report to the Conference;
Working as Connexional Team advisers, with colleagues in the Mission Team, to develop terms of reference and timelines to facilitate the work of the Connexional Economic Justice Working Group;
Working with colleagues on a number of important discipleship and worship resources such as Sunshine and Showers , On the Way , Lent and Christmas campaigns, and Bible Month.

The MVW Team continues to support the development of Local Lay-Pastors (LL-Ps) , working with Circuits and Superintendents to help shape new roles and develop appropriate support and training for those entering LL-P ministry. Tailored learning pathways are delivered in partnership with Cliff College and increasing numbers of Circuits are exploring LL-P ministry, prompting deeper conversations about collaborative lay and ordained leadership to meet local missional needs. A key focus this year has been supporting Circuits in accrediting prior learning and experience for LL-Ps who were already serving in the role before its formal establishment – a process that has been widely welcomed and seen as affirming of their ministry.

We continue to connect and network LL-Ps across the Connexion and will host our first LL-P conference in November 2025, enabling participants to engage with different aspects of the Methodist Church’s work and develop links to support their ministry in local contexts. We have also begun working with Districts to help them support Circuits in engaging with the LL-P office, offering bespoke guidance and aiming to expand this work over the coming year. In addition, we are exploring links between LL-P ministry and pioneer ministry, with the intention of developing formal training connections. Early conversations have also begun around how the LL-P pathway might collaborate with young adult development and vocational employment opportunities, and we hope to pilot some young adult LL-P opportunities over the next year.

The Resource Hub (formerly Singing the Faith Plus (StF+)) remains one of the most visited areas of the Methodist Church website, offering a dynamic and expanding library of worship resources. Following the launch of the new Methodist website last year, significant work has taken place behind the scenes to ensure the structure and functionality of the Resource Hub fully supports those leading worship. A recent addition is the tab function when navigating to a page from the calendar, paving the way for organising all materials for a particular day in one place.

As we continue to develop worship resources aligned with the aims of God for All Worship Renewal, this functionality will enable us to grow what is offered for each Sunday, helping worship leaders access a richer and more integrated set of materials. Following the departure of our freelance Singing the Faith editor, the MVW Team has temporarily taken on editorial

responsibilities for StF+ while new roles are recruited to support worship development. This transition has prompted the exploration of new ways of working to ensure continuity and creativity in resourcing worship across the Connexion.

We have also continued to develop conversations with key colleagues across the Connexion to explore how worship resources can better reflect and support the priorities of the Methodist Church – including Action for Hope and Justice-Seeking Church. As new roles are embedded and the Resource Hub’s functionality matures, we aim to ensure that worship materials are increasingly aligned with Our Calling and the Church’s wider strategic priorities.

Chaplaincy continues to be a celebrated ministry within the life of the Methodist Church. This year, the MVW Team partnered with the Evangelism and Growth team to explore how our theological understandings of discipleship are lived out in chaplaincy contexts, and how A Methodist Way of Life might equip and support chaplains in their settings. We hosted a launch event led by Professor Clare Watkins, introducing chaplains to Theological Action Research. Fifteen chaplains were recruited to take part in action research projects within their settings, and these will conclude in January 2026 with a celebration event where we plan to discern stories and learning and explore how these might be shared with the wider Church.

We also worked with Cliff College to launch a new Foundation Unit focused on chaplaincy, with the first cohort beginning in September 2025. This marks a significant step in developing accessible training for those exploring or engaged in chaplaincy ministry.

Our annual online celebration of chaplaincy, hosted with the President and Vice-President of the Methodist Conference, continues to be well-received and well-attended. It provides a space for chaplains and their supporters to gather, affirm their callings, and share stories of God at work in chaplaincy settings. Each year, the event reflects the presidential theme, helping to root chaplaincy in the wider life and vision of the Church.

The work of embedding reflective supervision throughout church life continued this year with the inclusion of many more lay roles that are “representative” by nature. This work is overseen by the Supervision Reference Group which reports into the Ministries Committee on a regular basis. The Church currently has 502 Supervisors who are active in the work of offering supervision to others. This number has remained largely steady over recent years with incoming newly trained supervisors replacing those who step away from the work (around, 30-45 spaces are offered to those wishing to train as supervisors and this helps maintain a solid base through which we continue our work). All those in senior leadership roles remain supported by external professionally qualified Supervisors.

Starting in 2021, the church instituted a reaccreditation programme to ensure that skills are maintained, and standards held at a suitably high level and 175 have completed their submission. Regular work is in place to follow up those who are overdue. 187 supervisors have attended extended learning around Supervision of Supervision and are in a good place to support colleagues enhance their praxis (45 places year are offered to those engaged in this work.) Other extension learning is provided through a series of online modules that cover a wide range of topics. Since its inception, 39 supervisors have been granted a bursary to obtain professional skills qualifications with 4 taking up that offer in 2024/25

A research programme has been in development in 2024/25 and is due to report during the connexional year 2025/26. Findings will feed into the report that re-examines and updates the policy at the 2027 Conference.

Areas of concern are still raised in very particular contexts about ensuring that arrangements have been put in place for all those who should be in supervision. These relate mainly, but not exclusively, to offering support to those in lay roles. Some pilot work around group supervision,

which may alleviate some of these issues, was given the green light by the Ministries Committee last year and will report back in the coming months.

Our Supervision programme is still seen as a marker of good practice with other organisations and denominations regularly seeking advice from us and exploring what will work for them in the light of our experience. This year has seen contact from various Anglican Dioceses, The Free Methodists, The Unitarian Church, The Baptist Union, The Salvation Army and the Scottish Episcopal Church

The Ministries and Learning team offered regular input to this work through their dedicated officer for supervision, the Learning Network and other members of the MVW team. Around 33 volunteers from across the connexional church also support training alongside their local active supervision ministry.

The initial Responsible Grace and extension Responsible Grace II (Supervision of Supervision) courses continue to be well received and are led by the MVW team in collaboration with the Learning Network and an increasing number of other facilitators drawn from across the breadth of the Methodist Church. We particularly draw on the deeper knowledge of those supervisors who have taken time to study on one of the diploma courses available.

This year we have added some additional continuing development modules (including Supervising those feeling Overworked and Overwhelmed) and ‘Not the Greenwich Foot Tunnel’ which explores alternative metaphors for supervision). Other modules have been reviewed and adjusted as necessary to reflect experience and feedback.

Learning and Development Team

Who Cares? – the short course in pastoral practice has been sold out each time it has been offered. These four sessions first focus on creating an environment of welcome and belonging, as the foundations of relational connection and faith formation, before looking at listening, prayer, dealing with difficult situations and self-care of the pastoral carer. Ongoing learning is being supported through online gatherings, in the shape of several communities of practice across the year, exploring good practice in areas such as pastoral visiting, pastoral care of families, and safe practices in caring for others, drawing on other areas of learning in which participants have engaged. Learning Network Officers have also utilised these resources to support initial briefings with the new Connexional Support Officers.

Marketing and Networking – social media engagement has been a key development this year. It has been helpful to not only signpost people across the Church to learning and development opportunities but to develop learning conversations across contexts and improve the profile of the Learning Network and its resources.

Explore programme - the Explore programme was due to be offered once a year and there has been demand for it to be offered twice, one cohort beginning each September and another each May. There have been between 8 and 13 Explorers per cohort. We have found that a taster session is required before each cohort. The Explore programme is part of the review of the candidating process.

Worship Leading and Preaching – the regular programme of support for students, tutors, mentors and local preachers’ secretaries continued through the year. The changes to continuous moderation of students’ work are now embedded. We are seeking to move away from the use of ‘regions’ to categorise students, but this can only be a gradual process as new students enrol. This year we are trialling on site Explore weekends around the country where there are opportunities for students to join for the Explore sessions in a particular module alongside a continuing development programme for experienced preachers, worship leaders and those interested in leading worship. The first session in Colchester was well attended, the Taunton

session was cancelled due to low numbers (despite hard work by those hosting in the district), the Salisbury session went ahead in September, and a session took place in Grantham in November.

Prayer – the Learning Network continued to work with Evangelism and Growth team colleagues to encourage and resource prayer in the context of the God for All strategy. This year we have helped to draw together prayers for times of different emotional experience https://www.methodist.org.uk/faith/exploring-faith/help-with-prayer/ and guidance for prayer ministry, the former being primarily externally facing, the latter in response to requests for support in this area.

Support for The Way of Peace has continued this year rolling out the Reconciliation and Mediation Team programme and continuing to offer training in conflict and a community of practice for District Reconciliation Group members. This has been possible due to the good partnership with Place for Hope.

Work has continued with the Conference Office to put in place training for the new appointees to District Resolution Officer positions. At the request of the Chairs this training has been put back to early 2026 to allow for more appointments to be made.

Support for key people in circuits and churches has continued, for example, Circuit Stewards training (on Zoom and on TheologyX) and regular Community of Practice sessions. Meanwhile work to further resource Church Stewards has commenced.

We have continued to work in partnership with Methodist Homes (MHA) to offer online training in such areas as leading worship for those with dementia and building confidence to speak of death and dying - we anticipate the programme going live in 2026.

Lay Employment Support -Reflective Line Management training continues to go well, with significant attendance numbers and appreciative reviews. Lay Employees from across the Connexion are joining the Lay Orientation learning and development opportunities, often presenting with enthusiasm for their work, and engaging well throughout.

The Conference, Council and Governance

The Methodist Conference

The government and discipline of the Methodist Church are vested in the Methodist Conference that meets annually. This covers the activities of the MCiGB plus all churches, circuits and districts. The Conference receives reports covering all aspects of the Church’s life and witness. At its meeting hosted from Telford, in June/July 2025:

21 presbyters and 3 deacons were received into Full Connexion on Sunday 29 June, along with 5 presbyters by transfer and 2 presbyters by reinstatement. Later that day, those presbyters and deacons not already ordained travelled to churches around the region for the ordination services.
Following the changes to the governance structure of the Church which took effect from September 2024, the Connexional Council is charged with responsibility for the general control and management of the connexional administration of the Methodist Church. The Connexional Council presented reports from the Ministries, Mission and Resourcing Committees, along with other matters of report or for decision.
The Conference agreed to begin a process of revising the Church’s authorised liturgies. This decision sets in motion a major project to equip the Church with new and revised liturgical resources available in a variety of formats.

The 3Generate report considered how the voices of the young people are calling for the church to be more accessible for those who are neurodiverse or unfamiliar with Church culture. The Conference encouraged Circuit Local Preachers’ Meetings to consider how they can involve children and young people in the planning and execution of acts of worship.
In response to a Notice of Motion from 2022, the Conference adopted pastoral guidance around healing ministry and neurodiversity and asked for further work to consider how the church might express appropriate repentance for the past exclusion of neurodivergent people in the life of the church and to explore how the church might be more inclusive of neurodivergent people, as well as ways to address ableism in the Church. The Conference also directed consideration of more resources relating to healing ministry in general.
The Conference noted the current public debate regarding assisted dying and directed that a task group be established to review the Conference’s position with regard to assisted dying and to report not later than 2028.
The report of the Stationing Review Group asserted the need for changes in the processes governing the stationing of ministers within the Methodist Church. The Report was received by the Conference, but it referred the proposals for a new process for matching presbyters with circuit appointments to the Ministries Committee.
The Conference received an update on Hope in God’s Future , where it stated that the 2011 statement needed revisiting and developing to acknowledge the changes in scientific and theological understanding. They agreed for a steering group to be appointed to review and update the text.
The Conference spent time conferring on justice for people seeking asylum and refuge. This involved listening to the realities and experiences of people who have experienced seeking asylum and those who have been alongside them. The Conference was invited to listen, pray and confer, to discern together the call of God in this area of work.
The Conference received a report from the Methodist Forces Board highlighting the work of those who minster to the members of His Majesty’s armed forces throughout the UK and around the world. The Conference directed the Faith and Order Committee, in consultation with others, to create theological and pastoral resources to support the Methodist people at this time of conflict and insecurity.

The Connexional Council

The Connexional Council is charged with responsibility for the general control and management of the connexional administration of the Methodist Church and is the Church’s trustee body. The Council is required to keep in constant review the life of the Methodist Church, so as to assist in making its work and witness more effective. The Council helps to ensure that the Conference’s decisions are implemented in a timely, cohesive and considered manner and brings proposals and reports to the Conference to determine the future policy and objectives of the Conference. The Council reports annually to the Conference on the discharge of its responsibilities.

The following are just a few of the actions that the Council carried out during 2024/2025 in accordance with its governance responsibilities.

It established its own ways of working and reporting relationships with its committees.
It agreed a scheme of delegation setting out what is delegated to its committees and what is delegated to officers of the Connexional Team.
It commenced work on strategy, including a review of the various existing strategies of the Church and considered the action required by the Council to support their delivery.
It established a process of consultation with representatives from every district on the future size, shape and cost of the Connexional Team.

Safeguarding

The new connexional safeguarding service for the church has been launched with the transfer of District Safeguarding Officers into a new connexionally employed service that brings all staff under a common job description, terms and conditions. Operating in four regional teams under a Regional Manager the new service will enable the church to deliver a more consistent and standardised service. This will improve the provision of safeguarding advice, guidance and investigations for churches as well as offering wider support to the regional officers in their new roles. The new structure also enables a greater focus on survivor advocacy and support as well as more dedicated time to our various training programmes.

The world of safeguarding continues to throw up new challenges. A clear example of this is the new threats, challenges and opportunities that online abuse and social media provide. As we move forward we have a new focus of drawing together various parts of the church who are all affected and involved in this set of concerns as we seek to establish guidance and support to make the online world as safe as we can for everyone.

The Safeguarding Committee continues its role to provide oversight of safeguarding and scrutiny across the Connexion. While the Committee is aware that the establishment of the single safeguarding service hasn't been easy for some, this is a significant step forward in ensuring consistent quality standards and increasing independence.

The Committee is forward leaning given our strategic role and is proactively looking at developments in safeguarding in faith communities, including power dynamics, new forms of church, online or digital church, and online safety. We continue our work to ensure that we are structured and organised to deliver across the breadth and depth of our terms of reference.

7. Property

The Connexional Property Support Team (PST) has continued to provide a broad range of direct and indirect support, from Connexional properties through to supporting Trustees with their local church buildings.

In the year, the PST has established and expanded its work and support across the Connexion, following successful recruitment to key roles during last year. Towards the end of the year, this included taking over the support to the Building and Facilities Manager at Methodist Church House.

Direct support to Managing Trustees and Ministers considering property matters such as redevelopment, reordering or disposal has increased. Due to its geographic spread, it has enabled the team to respond positively and proactively, with the PST supporting around 68 churches or circuits in some capacity by the end of the year. These can be broken down into the following broad themes:

8% Property sales or leases
10% Property redevelopment/reordering
18% Site redevelopment (new church)
25% Options appraisal/review
19% Property or portfolio reviews
10% Property & project management
3% Net zero specific projects
7% Miscellaneous

These broad statistics do not include the additional support for:

Projects where colleagues are working in collaboration through specific areas of expertise;

Any indirect support or answering of queries to the property@ inbox;
Any support to Connexional property.

The latter of these during the year included:

Methodist Church House at 25 Tavistock Place, London;
The Wesley Hotels at Camden and Euston;
The Connexional manse portfolio & its handover from the committee in August 2025.

In addition, the Connexional Conservation Officer continues to provide support and guidance to those tasked with managing Listed Buildings or buildings in Conservation Areas, together with administering the Ecclesiastical Exemption.

On a broader level, the PST have in development, and/or launched, other resources or events:

Circuit Property Review toolkit (launch planned for early 2025/26)
Property Stewards Handbook update (launched May 2025)
Property, Housing & Homelessness Conference in Birmingham
Property workshop and surgery at the Superintendents’ Conferences
Property Development Pathways update (launched planned for Y25/26) 6. Property workshop with the students at Queens Foundation

During the year, the PST launched a new Property Project Feasibility Funding process which brought greater depth to the funding resource by matching it with physical support from the PST and District Property Officers. This has enabled the team to engage with churches much earlier in a development process. By the end of the year, 23 churches had applied for a Property Project Feasibility grant and £92,760 had been awarded. Similarly, work and promotion of the team through the District Property Officer (DPO) network has led to earlier involvement in projects. Overall, work with the DPO network is evolving positively and the PST continue to host a monthly forum, which has changed slightly, to be led more by the DPO’s themselves. A very successful hybrid event was held at Methodist Church House in April 2025 with over 70% of the DPO network in attendance in person, with some joining online.

The team has also strengthened working ties with complimentary teams, such as the Environmental Team, to support the delivery of the net zero strategy for property. This collaboration led to an update to the Replacement Project criteria (SO973) towards the end of the year bringing net zero initiatives into a clearer missional position within the document.

Wider collaboration and partnerships have also been a focus for the PST this year, alongside general support for churches. This has centred on exploring and developing strategic partnerships which may help in the future in terms of social or development partners. One example is Action for Children in terms of their children’s homes and nursery provision projects using existing church buildings.

Plans for the future

The Connexional Council continues to be shaped by and committed to the vision which was reaffirmed as the strategic driver of the Church’s work in 2021, collectively known as ‘Reaffirming Our Calling’:

The calling of the Methodist Church is to respond to the gospel of God’s love in Christ and to live out its discipleship in worship and mission.

The Church does this through: Worship, Learning and Caring, Service, and Evangelism:

The Council is also committed to A Methodist Way of Life (MWOL) which provides a further level of detail to the four aspects of Our Calling by elaborating aspects of each. A Methodist Way of Life aims to provide a clear, detailed, and practical framework for what Methodist discipleship can look like in the 21st century. A Methodist Way of Life seeks to connect the diverse work of the Church in the world and to communicate it clearly to the world:

A MWOL commits us as people to;

Worship

We will pray daily. We will worship with others regularly. We will look and listen for God in Scripture, and the world.

Learning & Caring

We will care for ourselves and those around us. We will learn more about our faith. We will practise hospitality and generosity.

Service

We will help people in our communities and beyond. We will care for creation and all God’s gifts.

We will challenge injustice.

Evangelism

We will speak of the love of God.

We will live in a way that draws others to Jesus. We will share our faith with others.

The Council’s work therefore continues to centre around how the work of the Connexional Team and the policies of the Council specifically support the Church to fulfil its Calling.

In the last year the Council has reflected on the need for a number of change programmes to be in place to better enable the Church to focus more clearly on core areas (membership and worship) and, whilst ensuring all compliance requirements are met, free up the Methodist people to core activities.

The Council is particularly concerned to explore how we will be a connexional church in the digital age we are living in, how we best analyse what property is needed to fulfil our mission, the future shape of the Connexional Team, and the aspiration of the Church to be Net Zero by 2030.

The Methodist Conference affirmed that with the guiding principles of Our Calling and MWOL it seeks to become a growing Church once again: growing spiritually, growing in outreach and influence, growing in the depth of our commitment, and growing numerically.

The Environment

Action for Hope: care for creation

The Methodist Church has set an aspirational target of becoming a net zero carbon emissions church by 2030. We call the journey towards this goal, and the work it entails, Action for Hope .

The 2024/2025 Connexional year saw a change in structure of delivery of Action for Hope. Where the work had been led by an Action for Hope Implementation Officer, a Director of Environmental Engagement was appointed to continue this work. In December 2025 a Net Zero Property Officer was appointed to support managing trustees and custodians of Methodist property. Following the embedding of this new structure a further post, Net Zero Engagement Officer, has been approved, and the recruitment process for this role is underway.

Assets

The Net Zero Property Officer has undertaken work in supporting churches, circuits and districts, both directly in conversation with managing trustees and through the provision of guidance and support, primarily through the website. This guidance has focussed on accessing funding opportunities, providing advice on low carbon technologies and project management of net zero projects.

Across the 2023/2024 and 2024/2025 Connexional years, £5m of grant funding has been made available from the Connexional Priority Fund for grants to districts which can then, in turn, offer grants to churches. This financial support is allowing churches across the Connexion to begin a decarbonisation journey, and access other sources of funding.

Wisdom

An update to Hope in God's Future was received by the Methodist Conference in 2025, and this is now available for study and reflection. As part of the debate at Conference, it was agreed that a new Conference Statement on theology and discipleship in the context of climate change would be drafted for the Conference in 2027. The resource group to write this draft is currently being established.

The Methodist Church in Great Britain maintains a close working relationship with Eco Church, and approximately 40% of Methodist churches in Great Britain are now signed up to Eco Church or Eco Congregation Scotland. In the past year Eco District silver criteria have been launched to encourage districts to engage with Eco Church, and to encourage their churches to sign up to the award scheme. Conversations are currently ongoing about the creation of Eco Circuit award criteria.

Lifestyles

Work in this area has continued in close co-operation with the Joint Public Issues and Justice Seeking Church teams, as there is significant overlap in the lifestyle aims of Action for Hope and the climate justice priority of Justice Seeking Church.

The 2024/2025 Connexional year saw the launch of the Eco Community Network as a collaborative piece of work between the Environmental Engagement Team, Justice Seeking Church Team and the Learning Network. This has offered online gatherings for those across the Connexion with an interest in this area, with content designed in response to feedback from the community to ensure the support offered reflects the needs of its members. These gatherings have proved successful and are being continued and built upon in the 2025-2026 Connexional year.

Remuneration of Key Management Personnel

The Council oversees the operation of the Church on a day-to-day basis. It acts as the employing body for staff and the appointing body for ministers serving within the Connexional Team. It

delegates the monitoring of the Connexional Team to its Resourcing Committee. The senior management group of the Connexional Team comprises the key management personnel of the Church in charge of directing and controlling, running and operating the Team on a day-to-day basis.

Two senior leadership posts, the Secretary of the Conference and the Assistant Secretary of the Conference, have to be held by ordained ministers. They each receive the standard stipend plus a fixed percentage allowance. The levels of both are set annually by the Methodist Conference. The pay of the senior employed staff is set by a job-grading panel by reference to the Hays Pay and Grading Scale. In view of the nature of the Church’s work, the salaries are benchmarked against pay levels in other charities of a similar size run on a voluntary basis. The salaries for senior staff posts are determined as part of the same salary scale as is used for all staff posts.

Trustees are required to disclose all relevant interests and register them with the Conference Office. In accordance with the Church’s policy, trustees must withdraw from decisions where a conflict of interest arises.

Details of the expenses reimbursed and related party transactions relating to the Connexional Council are in Notes 25–27 to the financial statements.

Fundraising Activities

The Methodist Church raises funds through investment management, trading activity, property transactions and voluntary donations. It receives a proportion of funds raised locally on the sale of property owned by circuits.

It does not employ external fundraisers or undertake direct fundraising campaigns, such as direct mail or telephone canvassing of donations. Whilst essentially a passive fundraiser, it is registered with the Fundraising Regulator and indirectly raises funds from individuals by the following means:

a proportion of the weekly offertory and other donations in churches goes to support the central work of the Church;
donations for the mission funds (Mission in Britain Fund, Fund for Property, World Mission Fund) are collected by churches, circuits and districts. T he Methodist Church will assist churches, circuits and districts in this work for example by providing collecting boxes and worship resources; and
legacies are received either for general funds or the mission funds.

The Methodist Church is very grateful for all who contribute financially to the work of the Church through whatever means. It also acknowledges the generous support of the Benefact Trust which has provided grants of £0.89m during the 2024/25 financial year.

The Methodist Church has safeguarding procedures that protect vulnerable people and this extends to the indirect fundraising carried out on its behalf by local churches. The Church has not been made aware of any complaints from its fundraising activities.

Financial Review

The activities covered in these consolidated financial statements are those that were under the oversight of the Connexional Council. The Methodist Church in Great Britain is the registered charity, and the Charity Commission has agreed that these financial statements can properly serve as the financial statements of the charity.

The net income for the year was a deficit of £2.6m (2024: £5.8m surplus), including net investment gains of £4.7m (2024: £14.2m gain). The investment position broadly reflected the market conditions in the wider economy.

Other recognised gains/losses for the year were £0.9m (2024: £1.7m). A £1.0m gain (2024: £1.2m loss) arose from the actuarial revaluation of the Pension and Assurance Scheme for Lay Employees of The Methodist Church. A detailed disclosure on the Scheme’s financial position is provided in Note 28 (page 90). A £0.1m loss (2024: £0.5m loss) resulted from the revaluation of the Church’s charitable properties.

There was a significant reduction in grant expenditure (as detailed further below) during 2024/25 due to the fact the charity had made significant one-off grants in 2023/24. These had included organisational sustainability grants, and grants to repay donations that had been received into for the Pension Reserve Fund that were no longer required.

The accounts also show a £5.6m accounting adjustment in relation to the new Methodist Church House (MCH). It had always been the plan to use the proceeds from the sale of 25 Marylebone Rd (the former MCH) to purchase and redevelop a new property more in keeping with the needs of the Church without the need for further funds from the Church. The investment in the property was not focussed on increasing the valuation of the property, but instead delivering on the Church’s environmental priorities whilst also ensuring the Church owns a building that will deliver significant benefits over the long-term. So, whilst the purchase price and redevelopment of 25 Tavistock Place cost less than the proceeds of the sale of 25 Marylebone Rd, the valuation of 25 Tavistock Place in the accounts is £5.6m less than what was spent.

Income

The total income for the year was £52.3m (2024: £58.8m). The decrease of £6.5m was mainly due to the following:

An £8.2m decrease in property levies reflecting a reduction in property sales.
A £1.4m increase in miscellaneous income reflecting the ring-fenced circuit contributions to the Pension Reserve Fund.
A £1.0m increase in grant income.
A £0.7m decrease in investment income reflecting investment disposals and market conditions.
A £0.6m increase in District Assessment income.
A £0.5m decrease in trading income due to a reduction in trading activity at MICL.
A £0.2m decrease in donations & legacies mainly due to deconsolidating the accounts of Y Care International.

Expenditure Total expenditure decreased to £59.6m (2024: £67.2m). Of this, £51.3m was spent on direct charitable activities before support costs (2024: £58.6m). This reduction was mainly due to the following:

A £11.4m reduction in Evangelism and Growth expenditure as a result of: a reduction in one-off grants compared with 2023/24 for pension reserve refunds (£7.7m) and organisational sustainability grants (£4.2m); a £3.0m increase in spending on the God For All strategy, and a £2.5m decrease in contributions to the District Advance Funds as a result of the decrease in property levy income received.
A £5.6m accounting adjustment in line with expectations reflecting the new valuation of Methodist Church House compared with the costs of purchase and redevelopment.
A £4.1m decrease in Global Relations spend reflecting: reductions in regional grants (£2.7m); reduced redundancy (£0.4m); mission partner costs (£0.7m) and a reduction in All We Can’s fundraising costs (£0.3m).
A £1.9m increase in property spend due to: Action for Hope grants (£1.4m), the expansion of the property support team (£0.3m) and premises expenses (£0.2m).
A £0.7m increase in Building Communities linked to grant giving by the London Committee and God For All funded posts.
A £0.5m reduction in Ministry due to having made a one-off grant to Cliff College in 2023/24.
A £0.4m increase in Council & Governance due to providing District reorganisation grants (£0.2m) and additional Safeguarding staffing costs (£0.2m).
A £0.3m reduction in raising funds costs due to reduced activity at Methodist International Centre Ltd (MICL).
A £0.3m decrease in pension deficit payments linked to the improved valuation of the pension schemes.
A £0.2m increase in Children & Youth staffing costs.
A £0.2m increase in Learning Network staffing costs.

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Methodist Church in Great Britain - Total Expenditure £59.6m
Evangelism & Growth
9%
Ministries
19%
3%
Trading entities
4%
Global Relations
5%
Governance & oversight
Learning Network
5%
Property
15%
5%
Building Communities
Children & Youth
Pensions
10%
Loss on asset
14%
revaluation
11%
----- End of picture text -----

Reserves Policy

The total value of funds held at 31 August 2025 was £272m (2024: £274m). There are restricted reserves of £109m (2024: £123m), unrestricted reserves of £142m (2024: £131m), and endowment reserves of £21m (2024: £20m). The Methodist Church in Great Britain does not have a blanket reserves policy to cover its operations. Rather, the policies are set locally by the relevant trustee bodies and take into account the unique risk factors faced by each entity. The unrestricted funds reported in these financial statements were under the trusteeship of the Connexional Council, therefore the reserves policy outlined below is that of the Connexional Council.

General funds

There are five main unrestricted funds:

The Methodist Church Fund (also known as the general funds);
The Methodist International Centre (included within general funds);
The Connexional Priority Fund;
The Pension Reserve Fund; and
The Epworth Fund.

At 31 August 2025, the balance of the unrestricted general funds was £64.8m (2024: £58.4m). Of this £58.2m (2024: £51m) is invested in fixed assets, used in the day-to-day running of the Council’s activities and that of its subsidiary undertakings, which is therefore not available for use as a reserve. This consists of £20.3m of tangible fixed assets and £37.8m of investment properties. The trustees approved a reserves balance of £5 million. This would ensure that there is always sufficient cash or near cash at hand to enable operations to continue smoothly and without the disruption that might otherwise arise when receipts and payments occur irregularly or are delayed or accelerated. At 31 August 2025 the free reserves balance was £6.7m (2024: £10.7m). In line with a reduction in Assessment funding over the five-year period from 2023/24 onwards, the reserves balance is planned to fall each year reaching the £5m target in 2027/28.

Designated funds

Designated funds are part of the unrestricted funds. The trustees have earmarked them for a particular project or use, without restricting or committing the funds legally. The trustees may cancel the designation if they later decide that the activity should not proceed, or they decide not to continue with the project for which the funds were designated.

At 31 August 2025, the designated funds totalled £77 million (2024: £73 million) of which the main fund balances were as follows:

 Connexional Priority Fund  Epworth Fund  Pension Reserve Fund  Training Fund Total:	£31 million £6 million £37 million £3 million £77 million

The Connexional Priority Fund (CPF), as a large, designated fund, reflects the connexional nature of The Methodist Church. Its income is derived from levies on property sales. It serves to redistribute money around the Connexion as a proportion of money released in one area becomes available for new mission and ministry elsewhere. In 2021 the Methodist Council approved a reserves policy for this fund, setting the long-term uncommitted reserves level of the CPF at £1.5 million. This amount allows for one year of existing commitments to be maintained due to the timing of transactions. It is anticipated that the CPF reaches its reserve level by 2029. The increase in the value of the CPF during 2024/25 largely reflects the Council designating £10m of funds that had previously been designated for the benefit of the Pension Reserve Fund. This change in designation reflected the improved funding of the pension schemes.

The Epworth Fund was set up with the proceeds from the sale of Epworth House, City Road, London in 1987. The purpose of the fund is to support long term innovative projects. In 2021 the trustees amended the reserves policy to £1m with a commitment to use the remaining funds for missional purposes and in particular the costs of investment in IT. The reserve amount allows for one year of existing commitments to be maintained (allowing sufficient time for arrangements to cease funding to be put in place).

The Pension Reserve Fund (PRF) exists to help mitigate the financial risks associated with the Methodist Ministers’ Pension Scheme (MMPS) and the Pensions and Assurance Scheme for Lay Employees of the Methodist Church (PASLEMC). Following an insurance buy-in of the PASLEMC liabilities in 2024 the level of financial risk has materially reduced. The PASLEMC risk will disappear completely once a proposed insurance buy-out is completed in 2026. The Council has agreed with the Pension Trustee to maintain a PRF balance of circa £30m (plus property security of c£20m) to mitigate the ongoing financial risk associated with the MMPS.

At 31 August 2025 the reserves position on the designated funds is above the policy by £23m (2024: £27m). Excess balances have been allocated to: the delivery of Our Calling; the God For All Strategy; the Action for Hope aspiration to achieve net-zero carbon by 2030; the Justice, Dignity and Solidarity strategy; the Justice Seeking Church strategy; developing a digitally enabled Church; property support, and the transition of Safeguarding from Districts to the Connexional Team. The balance held in the smaller designated funds is detailed in Note 19c (page 77) in the notes to the financial statements.

Financial risks

The Council’s general reserve enable it to make long-term commitments to projects, and to protect its work against adverse financial events. A formal review of the reserve levels takes place every three years. In the intervening years the Resourcing Committee considers the impact of the financial risks associated with the income and expenditure streams and balance sheet items and assesses the appropriateness of the reserve range. This allows time for fundamental restructuring, in the event of a major downturn, and to protect the current programme of work

from unexpected demands. The goal is to plan for the effective deployment of the available financial resources to achieve the strategic objectives of The Methodist Church (see page 3).

The Council is faced with the following financial risks:

dependency on limited income sources (the Methodist Church Fund (MCF) assessment, investment income and donations);
fluctuations in investment income;
fluctuations in income from the levies on proceeds of property sales;
inability to attract donations from the public;
an increase in the defined benefit pension scheme liabilities; and
a sustained fall in the value of investments and property held by the Council.

The MCF assessment is the main source of unrestricted income for the Council. It is a major contributor to the funding of several key activities including the administration of the Connexional Funds, the Learning Network and major aspects of the governance processes such as the Council and the Conference.

The assessment is a charge upon circuit receipts. The impact of the Covid-19 pandemic has left several circuits expressing doubts about their ability to meet the assessment. These concerns build upon the recent trends of decline in membership of local churches. In response, the Methodist Conference started a process of reducing the Assessment (by 1% in 2021/22, a further 2% in 2022/23 and then a further additional 3% in real terms each year from 2023/24 to 2027/28).

Other sources of income available to the Council are donations, legacies and investment income. Legacy income, when received, is significant but prone to fluctuation. Unrestricted donations tend to be very variable and have been impacted by the closure of church buildings for much of the year.

The impact of a sustained fall in the investments and other assets held by the Council could be felt in two ways: first, a deficit in the statement of financial activities occurring over several years; second, difficulties in realising assets with the potential for consequent cash flow, and operational problems.

A key financial risk faced by the Church is the level of the deficit within the defined benefit pension schemes. To mitigate this risk, the Pension Reserve Fund was established by the 2009 Conference as a fund outside the schemes, which could be used to meet future funding deficits. At the 2023 Valuation the MMPS had a surplus of £33.7m and the PASLEMC a small deficit of £0.7m. The PASLEMC deficit was cleared by a transfer of funds from the PRF in April 2024.

The Methodist Council closed the PASLEMC to new entrants with effect from 31 May 2019. Existing members benefit from the scheme arrangements up until this date but are no longer able to make further member contributions, and members therefore do not build up any further benefits in the Scheme. The pension that members have already built up is retained in the Scheme and paid upon retirement (note 28 to the accounts provides more detail).

In addition, the Methodist Council agreed a Framework Agreement with the trustee of both PASLEMC and MMPS. This covers the requirement for a long-term funding objective, a remedy mechanism should funding deviate from the long-term goal, and a contingent asset that provides the trustees security over Connexional properties should the Council or Conference ever default on payments due. Due to the improved funding position none of the triggers in the Agreement have been activated.

The level of reserves expected to be held in the Pension Reserve Fund (PRF) forms part of the ‘employer covenant’ with the pension trustee boards and is therefore currently considered

appropriate. This fund is defined by Standing Order 974(iA) and decisions regarding its use can only be taken by the Conference. Due to the considerable balance already held in the PRF and the reducing level of risk associated with the pension funding positions, further payments into the fund have been suspended other than circuits making ring fenced excess pension contributions.

Investments

As at 31 August 2025, the Church held fixed asset investments with a fair value of £179 million (2024: £176 million). The Resourcing Committee is responsible for reviewing the investment portfolio and performs an annual review of the investment policy. The Church’s investment objective is to seek an optimal return from income and capital combined. The Resourcing Committee was satisfied with the overall performance of the investment portfolio against agreed benchmarks.

Funds not immediately required are invested in marketable securities through The Methodist Church’s in-house investment manager, the Central Finance Board (CFB) of The Methodist Church, whose mission is to:

provide a high-quality investment service, seeking above average returns for long-term investors;
follow a discipline in which the ethical dimension is an integral part of all investment decisions;
construct investment portfolios that are consistent with the moral stance and teachings of the Christian faith;
encourage strategic thinking on the ethics of investment; and
be a Christian witness in the investment community.

To ensure that the CFB is working to the highest ethical standards, the Methodist Conference established the Joint Advisory Committee for the Ethics of Investment (JACEI), which is made up of five people nominated by the CFB and five by the Council. The committee monitors the activities of the CFB to ensure that it complies with the ethical stance of the Church. With regard to investment management the Resourcing Committee and representatives from the Connexional Team decide, after taking advice from the CFB, the most appropriate investment strategy for each fund under the management of the Connexional Team.

In addition to marketable securities, some funds hold freehold property as investments. These tend either to have been given to the fund, or are redundant properties that are either rented out or are awaiting disposal.

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Performance and holdings
Gains on investments in year were 1 year to 3 years to 5 years to
£4.6m (2024: £14.2 gain). This 31.08.25 31.08.25 (p.a.) 31.08.25 (p.a.)
performance was linked to the global
market conditions. The total returns as
at 31 August 2025 for CFB managed
funds are summarised as follows:
Managed LT Connexional Council Fund 5.1% 6.2% 7.0%
Managed MT Connexional Council Fund 2.9% 4.3% 3.6%
1 year 3 years (pa) 10 years (pa)
CFB UK Equity Fund 4.3% 8.3% 6.4%
FTSE All Share 16.8% 12.9% 8.0%
CFB Global Equity Fund 4.6% 8.6% 11.2%
Benchmark 13.3% 12.5% 13.4%
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CFB ManagedFixedInterestFund	0.1%	1.8%	0.6%
Benchmark	2.5%	2.3%	0.9%

CFB DepositFund	4.5%	4.4%	2.8%
Compositeindex	4.6%	4.6%	2.8%
Property benchmarks
	1 year to 30.06.25	3 years to 30.06.25 (p.a.)	11.07.16 to 30.06.25 (p.a.)
ManagedLTConnexionalCouncil Fund	4.5%	6.3%	6.8%
Benchmark	7.6%	7.0%	7.1%

ManagedMTConnexionalCouncil Fund	4.1%	4.1%	4.2%
Benchmark	6.2%	4.0%	4.1%

	1year	3 years (pa)	10 years (pa)
CFBUK EquityFund	5.9%	7.8%	5.9%
FTSE AllShare	11.2%	10.7%	6.8%

CFB PropertyFund	7.7%	-4.4%	4.8%
IPD All BalancedFundsIndex	6.7%	-4.1%	4.0%

Risk Management

Effective risk management is fundamental to maintaining and developing the mission of the Methodist Church in line with Our Calling and ensuring the Council is provided with a means to control risk within its strategic planning and priorities. The Council is the key governance body for overseeing risk management for the activities of the Connexional Team and has delegated responsibility from the Conference for overseeing the corporate risk register.

We define key strategic and operational risks as those that, without effective or appropriate mitigation, are highly likely to occur and would have a negative impact on the Church’s ability to fulfil its purpose of advancing the Christian faith in accordance with its doctrinal standards. These risks are reported to the trustees through a risk management process, which allows them both to challenge any assumptions the management team has made about risks and to understand the context in which decisions are taken. This helps to ensure that the most serious risks are being managed effectively.

The trustees recognise that it is neither possible nor appropriate to seek to eliminate risk entirely. We recognise that risk-taking is inherent within the task of communicating the gospel; John Wesley himself took risks in establishing the Methodist communities. Our task, therefore, is to embrace risks that aim to advance the Church’s purposes while ensuring that we avoid or minimise those risks that might have a negative impact. Effective risk management processes will help to increase the likelihood of the Church fulfilling its mission.

The most significant risks faced by the Church and the mitigations are as follows:

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Risk Current mitigations
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Risk Currentmitigations	Risk Currentmitigations

Failure to make new disciples means the membership of the Church continues to decline.	God For All (GFA) strategy linked with the Justice, Dignity and Solidarity Strategy is signalling a desire to grow in new places. The Conference of 2024 approved the extension of GFA to 2032. Our focus on Inclusion helps to broaden our appeal.

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Safeguarding failures (such as serious allegations Review of policy on responding to survivors,
of current or historic abuse). reflection on the role and nature of internal
enquiries as well as a general review of the actions
taken over the last period. Crisis management
policy supports a more effective response to
issues as they arise; review of JDS Committee
Action plan to ensure safeguarding aspect is fully
covered. New Safeguarding Team structure
following the transfer of all district safeguarding
officers to the employment of the Connexional
Team, provides enhanced regional oversight.
Non-compliance by Managing Trustees of Conference digest sent to all ministers, website,
decisions of the Methodist Conference and publication of CPD, District representatives at
statutory legislation Conference, pastoral letter by Secretary of the
Conference. Connexional Team provides guidance
on areas of compliance.
Failure to deploy/station people to where they Stationing Matching Group and Processes
would be most effective
New governance structure fails to deliver strategic Robust recruitment process for trustees
decision making
Reputational damage from failing to deliver on the Action for Hope. Hope in God's Future.
Church's aspirational target to achieve 'net zero' EcoChurch/Congregation. Grant funding from the
by 2030 Connexional Priority Fund.
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In relation to the principal risks identified, these are managed on an on-going basis by the relevant member of the Senior Management Group (SMG) of the Connexional Team. Mitigating actions and risk scores are reviewed monthly at a meeting of the SMG. The risks are reviewed at the Audit & Risk Assurance Committee and at the Council. The Audit and Risk Assurance Committee also undertake a ‘deep dive’ into one or two of the risks at each of its meetings. The trustees consider that the following framework provides the Church with adequate measures to minimise the impact of identified risks.

Risk appetite

Risk appetite is the amount of risk the Church is willing to accept in relation to key drivers of the organisation. Our risk management philosophy is to minimise risk, but it enables us to accept additional risk, providing the impact has been evaluated, mitigation measures have been put in place, and a regular robust monitoring process is established. This approach to reviewing risk enables the Council to adopt appropriate behaviours, decisions, and controls according to the priorities in the Connexional Team’s strategy plan.

Prior to any risk being accepted, we consider the likelihood of the risk occurring and the impact on the Church if the risk did occur. Any risk that seriously threatens the ability of The Methodist Church in Great Britain, now or in the future, to further its purpose of advancing the Christian faith will not be acceptable. If such a risk cannot be extinguished, then all steps will be taken to minimise the likelihood of the risk occurring.

Risk strategy and responsibilities

The Council’s role in the oversight of risk is to set out the ethos for risk management and to promote a culture of risk management within the activities of The Methodist Church in Great Britain on behalf of the trustees. This includes:

approving the risk management policy every three years;
setting the risk appetite and tolerance and outline this in its risk management policy;
ensuring risk management is embedded in the day-to-day working of the Connexional Team;

considering the impact of any new strategy or policy on the risk register;
receiving regular reports from the Audit and Risk Assurance Committee as to how risks are being actively managed and whether appropriate controls are in place and working effectively;
making decisions that reflect its appetite for risk;
ensuring that the Senior Management Group of the Connexional Team is clear who are the risk owners in respect of the risk register and shall hold such risk owners to account for their action to mitigate the identified risk;
reviewing the corporate risk register and Connexional Team Risk Register twice a year, and
receiving a regular report from the Conference Officer for Legal and Constitutional Practice on any serious incident report made to the Charity Commission or another external regulator during the course of the year that affects the Methodist Church in Great Britain.

The Council annually reviews the Connexional Team’s approach to risk management; approving changes or improvements to key elements of its processes and procedures; forming an opinion on whether the Team has complied with expected risk management practice. The following safeguards are in place:

Policies and procedures - Attached to significant risks are a series of policies that underpin the internal control system. Written procedures support the policies where appropriate.
Reports - The Senior Management Group of the Connexional Team, the Council and its committees receive several key reports on a regular basis, which allow for the monitoring of key risks and their controls. Decisions to rectify problems are made at regular meetings of the Senior Management Group and the Council, if appropriate.
Strategic planning and budgeting - The strategic planning and budgeting process, undertaken by the Resourcing Committee, is used to set objectives, agree action plans and allocate resources. Progress towards meeting strategic plan objectives is monitored regularly.
Risk registers - Registers exist for both the corporate and programme dimensions of the life of the Church. These documents are formally appraised annually and updated for emerging risks as they arise. Additionally, improvement actions and risk indicators are monitored regularly.
Team risk management - The senior managers are expected to use the framework of the plan to ensure that risk management is embedded within their areas of responsibility and that significant risks are identified, assessed and referred to the Connexional Secretary. This also includes the removal of any previously listed risks where the threat is no longer significant enough to be included in the document.
Audit and Risk Assurance Committee - In its report to the Council on internal controls, the Audit and Risk Assurance Committee alerts the Council to any issues of concern. A summary of the terms of reference of the committee can be found on page 6.
Internal audit programme - This is an important element of the internal control process and includes reviewing aspects of the effectiveness of the internal control system within the organisation.
External audit - The external auditor provides a report to the Audit & Risk Assurance Committee on the operation of the internal financial controls and the statutory requirements placed upon the trustee body.
Third party reports - From time to time, the use of external consultants will be necessary in areas such as health and safety and human resources. The use of specialist third parties for consulting and reporting can increase the reliability of the internal control system.

Monitoring and review of the policy

The risk management policy is reviewed by the Senior Management Group of the Connexional Team, meeting annually as the Risk Management Group, which makes reports to the Audit and Risk Assurance Committee and makes recommendations to the Council.

For the year under review, the Council is satisfied that the major risks to which the Church is exposed have been assessed and is satisfied that systems are in place to manage and mitigate exposure to them.

Risk management is part of the wider system of internal control. This system encompasses several elements that together facilitate an effective and efficient operation, enabling the Church to respond to a variety of operational, legal, financial and commercial risks.

Data Protection

In respect of enhancing our Data Protection Governance during 2024/2025, we continued to provide periodic UK GDPR updates and information to staff. The Data Protection Officer (DPO) continued to work with the IT Security Lead to review and update existing Data Protection Policies and to create new polices (e.g. AI; WhatsApp) where necessary to protect the Connexional Team. This helped ensure we maintained our UK GDPR and Data Protection obligations for data processing and handling.

The Connexional Team’s Data Retention Schedule has been fully updated to ensure that data is processed in a more uniform fashion and in line with Data Protection and UK GDPR obligations. Looking ahead, the DPO will be providing training to Lead Managers and other appropriate staff to ensure that team data processing is assessed and improved if needed. The DPO continues to monitor data breaches, including near misses caused by human error, and provides feedback via the Connexional Team meetings on the areas where breaches are mostly occurring. This ensures that staff are more vigilant so as to prevent further near misses or breaches from occurring in these areas. It also allows the DPO to implement additional training and focus on any common data breach areas as they arise.

Going concern

The trustees continue to prepare the financial statements on the basis that The Methodist Church in Great Britain is a going concern. Evidently, the Church has adequate financial resources and is able to manage business risks. The planning processes, including financial projections, take into consideration the prevailing economic climate and its potential impact on the various sources of income and planned expenditure. The trustees have looked at least 12 months ahead and are satisfied that the Church has adequate resources to continue in operational existence for the near future and there are no material uncertainties that call into doubt the Church’s ability to continue in operation. Overall, in-year financial performance for 2024/25 was favourable to plan (before accounting for the losses on investments that partly reversed some of the significant investment gains from 2023/24). Income was in line with plan and expenditure favourable to plan due the favourable pension valuation meaning deficit contributions were not required. The budget for 2025/26 has been set consistent with the assumptions agreed by the Conference in 2023. The pay award in September 2025 is 3.5% and assessment income from districts falls 3% again this year. However, transitional funding continues to be deployed from the Connexional Priority Fund to offset the underlying deficit for the next 3 years whilst a transformation programme is planned and implemented.

The more material risk remains as last year, namely the ability of churches to continue to pay their contribution to the District Assessment (£15.7m) and pay their ministers (c£50m). The current balances held by churches and circuits in their Central Finance Board deposit accounts total an estimated £250m. In addition, there are cash balances held in commercial bank accounts of tens of millions. Given an assumed turnover across all churches and circuits of c£90m there is approximately three years’ worth of expenditure sitting in reserves. Consequently, there is no immediate threat to the District Assessment income and nor should circuits be defaulting in funding the payroll costs of ministers.

The ongoing sale of churches and manses across the Connexion continues to provide a flow of money into both local church/circuit funds and the Connexional Funds that further supports the

medium-term financial viability of the charity. The funding position of both pension schemes has led to further measures to permanently decrease the level of risk. This may allow the release of further funds held in the Pension Reserve Fund once the 2026 Triennial Valuation is complete.

Related Parties

The various parts of the legal framework within which The Methodist Church is governed allow for the setting up of separate bodies all reporting into the Conference to handle specific aspects of the Church’s work and/or discharge a specific power of the Church. The related parties are:

The Trustees for Methodist Church Purposes (TMCP). These are the custodian trustees of all property held on the Model Trust of The Methodist Church Act 1976, except for properties in the Channel Islands and the Isle of Man, which are held by the Trustees for Jersey Methodist Church Purposes, the Trustees for Guernsey Methodist Church Purposes and the Trustees for Manx Methodist Church Purposes.
The Central Finance Board of The Methodist Church (CFB). This was set up by an Act of Parliament in 1960 to enable Methodist organisations to pool their assets and manage them efficiently. The CFB has its own fund management department enabling it to provide professional investment management for the Connexional Team as well as other organisations within Methodism.
The Methodist Ministers’ Housing Society. This was set up under the Community and Co-operative Benefit Societies Act 2014. It provides housing and associated amenities for retired Methodist presbyters, deacons and their partners. The Council makes regular grants from the Fund for the Support of Presbyters and Deacons (FSPD) in support of its work under Standing Order 375.
The Queen’s Foundation for Ecumenical and Theological Education. This institution offers training pathways for student ministers to prepare for ordained ministry in The Methodist Church.
Other Methodist bodies with which the Connexional Team have regular dealings include the Methodist Ministers’ and Lay Employees’ Pension Trusts and the Methodist Independent Schools Trust.

Details of transactions with these related parties and any outstanding balances at the year-end are provided under Note 27 (page 88) of the financial statements.

Statement of Trustees’ Responsibilities

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and the group and of the income and expenditure of the charity and group for that period. In preparing these financial statements, the trustees are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP;
make judgements and estimates that are reasonable and prudent;
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Auditor

Following a competitive tender process in 2023, RSM UK Audit LLP were appointed for a further three years as auditor to the charity.

The Revd Sonia Hicks Chair of the Council

10 February 2026

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE METHODIST CHURCH IN GREAT BRITAIN

Opinion

We have audited the financial statements of The Methodist Church in Great Britain (the ‘parent charity’) and its subsidiaries (the ‘group’) for the year ended 31 August 2025 which comprise the Consolidated Statement of Financial Activities, the Connexional Funds Statement of Financial Activities, the Consolidated and Connexional Funds Balance Sheets, the Consolidated and Connexional Funds Cash Flow Statements and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the group’s and charity’s affairs as at 31 August 2025 and of their incoming resources and application of resources for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

We have been appointed as auditors under section 151 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s or parent charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Trustees’ Report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

the information given in the financial statements is inconsistent in any material respect with the Trustees’ Report; or
sufficient accounting records have not been kept by the parent charity; or
the parent charity financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ responsibilities set out on page 39, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s and parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or parent charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of noncompliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the group audit engagement team:

obtained an understanding of the nature of the sector, including the legal and regulatory framework, that the group and parent charity operate in and how the group and parent charity are complying with the legal and regulatory framework;
inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

As a result of these procedures, we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Charities Act 2011 and the parent charity’s governing document. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees’ Report and remaining alert to new or unusual transactions which may not be in accordance with the governing documents.

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to General Data Protection regulations in the UK and safeguarding. We performed audit procedures to inquire of management and those charged with governance whether the group is in compliance with these laws and regulations and inspected correspondence with regulatory authorities.

The group audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing a sample of manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business, challenging judgments and estimates.

A further description of our responsibilities for the audit of the financial statements is provided on the Financial Reporting Council’s website at http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity’s trustees as a body, in accordance with the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

RSM UK Audit LLP Statutory Auditor Chartered Accountants 103 Colmore Row Birmingham West Midlands, B3 3AG

Date: 13 March 2026

RSM UK Audit LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

Consolidated statement of financial activities for the year ended 31 August 2025

The Methodist Church in Great Britain

Consolidated statement of financial activities

For the year ended 31 August 2025

	Notes	Unrestricted	Restricted	Endowment	2025 Total	Unrestricted	Restricted	Endowment	2024 Total
		£000	£000	£000	£000	£000	£000	£000	£000
Income and endowments from:
Donations and legacies	3a	881	4,007	-	4,888	598	4,450	-	5,048
Charitable activities	3e	14,533	344	-	14,877	14,057	259	-	14,316
Investments	4a	2,885	3,452	-	6,337	3,486	3,508	-	6,994
Other trading activities	5a	7,788	1,737	-	9,525	8,150	1,835	-	9,985
Other
Capital levies	6a	12,085	-	-	12,085	20,286	-	-	20,286
Grants	6b	720	1,099	-	1,819	3	776	-	779
Miscellaneous income	3c	2,152	312	-	2,464	624	462	-	1,086
Net gains onthe disposaloftangiblefixed assets		47	241	-	288	311	-	-	311
Total income	19a, 20a	41,091	11,192	-	52,283	47,515	11,290	-	58,805
Expenditure on:
Raising funds		7,090	1,266	7	8,363	7,540	1,098	6	8,644
Charitable activities
Building communities	7a	2,025	919	-	2,944	1,466	728	-	2,194
Children & Youth	7a	2,365	-	-	2,365	2,198	1	-	2,199
Evangelism & Growth	7a	8,110	3,497	-	11,607	22,263	765	-	23,028
Global relations	7a	1,425	5,157	-	6,582	1,349	9,359	-	10,708
Learning Network	7a	3,076	-	-	3,076	2,899	2	-	2,901
Connexional Council & Governance	7a	6,005	7	-	6,012	5,603	2	-	5,605
Ministry	7a	3,507	5,121	-	8,628	4,040	5,056	-	9,096
Property	7a	2,353	479	-	2,832	742	200	-	942
Others - Pensions	7a	1,630	-	-	1,630	1,890	-	-	1,890
Accounting adjustment on the revaluation of tangible fixed assets	7a	-	5,591	-	5,591	-	-	-	-
Total expenditure	19a, 20a, 21a	37,586	22,037	7	59,630	49,990	17,211	6	67,207
Net gains/(losses) on investments	14a	5,806	(1,156)	59	4,709	8,348	5,122	748	14,218
Net income		9,311	(12,001)	52	(2,638)	5,873	(799)	742	5,816
Transfers between funds	22	1,057	(1,361)	304	-	(1,261)	971	290	-
Net income after transfers		10,368	(13,362)	356	(2,638)	4,612	172	1,032	5,816
Other recognised gains and losses:
Remeasurement of net defined benefit pension scheme liability	28	1,078	(43)	-	1,035	(1,150)	(86)	-	(1,236)
Gains(losses)on revaluation of charitableproperties		1	(116)	-	(115)	(291)	(221)	-	(512)
Net movement in funds		11,447	(13,521)	356	(1,718)	3,171	(135)	1,032	4,068
Total funds at 1 September		130,613	122,745	20,298	273,656	127,442	122,880	19,266	269,588
Total funds at 31 August		142,060	109,224	20,654	271,938	130,613	122,745	20,298	273,656

The Methodist Church in Great Britain

Statement of financial activities – The Connexional Funds

For the year ended 31 August 2025

The Methodist Church in Great Britain

Balance Sheet as at 31 August 2025

		The Methodist Church in Great Britain	The Methodist Church in Great Britain	The	Connexional Funds
	Notes	2025	2024	2025	2024
		£000	£000	£000	£000
Fixed assets
Intangible assets	13c	418	153	402	81
Tangible fixed assets	13a&b	71,541	75,158	61,101	64,594
Investments	14a&b	178,803	175,730	177,349	174,311
Current assets Stocks Debtors Short-term deposits Cash at bank and in hand	17 15	250,762 0 27 5,414 27,891 8,465	251,041 0 35 5,416 33,160 6,287	238,852 0 16 4,738 16,399 6,765	238,986 21 6,484 21,161 3,968
Total current assets Creditors Amounts falling due within one year Net current assets Total assets less current liabilities Creditors Amounts falling due after more than one year	16a 16b	41,797 (16,740) 25,057 275,819 (2,434)	44,898 (19,313) 25,585 276,626 (759)	27,918 (14,764) 13,154 252,006 (2,346)	31,634 (18,845) 12,789 251,775 (606)
Net assets excluding pension liability Defined benefit pension scheme liability Net assets including pension liability	28 23	273,385 (1,447) 271,938	275,867 (2,211) 273,656	249,660 (1,447) 248,213	251,169 (2,211) 248,958
The funds of the charity
Unrestricted funds
General funds		64,839	58,368	61,204	54,944
Designated funds		77,405	73,180	74,710	71,291
Defined benefitpension scheme liability	28	(184)	(935)	(184)	(935)
Total unrestricted funds	19	142,060	130,613	135,730	125,300
Restricted funds	20	109,224	122,745	91,829	103,360
Endowment funds	21	20,654	20,298	20,654	20,298
Total funds		271,938	273,656	248,213	248,958

Total unrestricted funds include revaluation reserve of £7.0m (2024: £7.0m) for both The Methodist Church in Great Britain and the Connexional Funds. Total restricted funds include revaluation reserve of £43.4m (2024: £44.9m) for The Methodist Church in Great Britain and £37.8m (2024: £39.3m) for The Connexional Funds. (Note 24 Page 84)

The notes on pages 49 to 95 form an integral part of these accounts.

Approved and authorised for issue by the Board of Trustees on 10[th] February 2026 and signed on their behalf by:

_______

The Revd Dr Sonia M Hicks Chair of the Council

The Methodist Church in Great Britain

Cash flow statements for the year ended 31 August 2025

Statement of cash flows Note The Meth	2025 £000 odist Church in	2024 £000 Great Britain	2025 2024 £000 £000 The Connexional Funds
Cash flows from operating activities Net cashgenerated used in operatingactivities	(7,837)	(13,051)	(7,945) (11,522)
Cash flows from investing activities Dividends, interest and rents from investments Proceeds from the sale of property, plant and equipment Purchase of property, plant and equipment Purchase of intangible assets 13c Proceeds from the sale of investments 14a, 14b Purchase of investments 14a, 14b Interest payable Net cash provided by investing activities Cash flows from financing activities Repayment of loans Net cash from/(used in) financing activities	6,337 754 (3,782) (350) 3,581 (1,065) (6) 5,469 (284) (284)	6,993 1,286 (9,613) (24) 25,636 (872) - 23,406 (1) (1)	6,807 7,337 553 1,156 (3,538) (9,395) (350) - 2,798 13,208 (291) (303) - - 5,979 12,003 - - - -
Change in cash and cash equivalents in the reporting period	(2,652)	10,354	(1,966) 481
Cash and cash equivalents at the beginning of the reporting period Non-consolidated entity - Y Care	39,447 (439)	29,093 -	25,129 24,648 - -

Cash and cash equivalents at the end of the reporting period	36,356	39,447	23,163 25,129
Reconciliation of net income to net cash flow from operating activities	2025 £000	2024 £000	2025 2024 £000 £000
Net (expenditure)/income for the year Adjustments for: Depreciation and amortisation charges 13a, 13c Net losses/(gains) on revaluation of fixed assets Realised gain on the sale of fixed assets Interest payable Elimination of Y care from consolidation Net gain on investments 14 Investment income Decrease in stocks 17 Decrease/(Increase) in debtors 15 (Decrease)/increase in creditors 16 Pension costs/difference between pension costs charged and paid	(2,638) 429 5,595 (288) 6 439 (4,709) (6,337) 8 2 (615) 271	5,816 344 (428) (311) - - (14,218) (6,994) 7 1,722 1,268 (257)	(1,781) 7,523 166 124 5,595 (428) (134) (311) - - - - (4,665) (13,927) (6,807) (7,337) 5 9 1,746 (83) (2,341) 3,165 271 (257)
Net cash (used)/generated in operating activities	(7,837)	(13,051)	(7,945) (11,522)
Analysis of cash and cash equivalents	2025 £000	2024 £000	2025 2024 £000 £000
Cash in hand and at bank Short-term deposits (less than 3 months)	8,465 27,891	6,287 33,160	6,765 3,968 16,399 21,161
Total cash and cash equivalents	36,356	39,447	23,164 25,129
Analysis of changes in net debt The Methodist Church in Great Britain Cash and cash equivalents Short-term deposits Cash at bank and in hand Borrowings Debt due within one year Debt due after one year	01-Sep 2024 £000	Cash flows £000	Non-cash 31-Aug changes 2025 £000 £000
	33,160 6,287	(5,269) 2,617	- 27,891 (439) 8,465
	39,447 (284) (84)	(2,652) 256 28	(439) 36,356 - (28) - (56)
	(368)	284	- (84)
Total	39,079	(2,368)	(439) 36,272
The Connexional Funds Cash and cash equivalents Short-term deposits Cash at bank and in hand	01-Sep 2024 £000	Cash flows £000	Non-cash 31-Aug changes 2025 £000 £000
	21,161 3,968	(4,762) 2,797	- 16,399 - 6,765
Total	25,129	(1,965)	- 23,164

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025

1. Accounting policies

a) Scope and basis of the preparation of the financial statements

The Methodist Church in Great Britain is a public benefit entity for the purposes of FRS 102, and therefore the financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (‘the SORP’).

The financial statements have been prepared to give a “true and fair” view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a “true and fair” view. This departure has involved following “Accounting and Reporting by Charities preparing their financial statements in the UK and Republic of Ireland (FRS 102)” second edition effective from 1 January 2019, rather than “Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005” which has since been withdrawn. The preparation of the financial statements in accordance with FRS102 requires the trustees to make judgements, estimates and assumptions that affect the application of policies and reported amounts in the financial statements. The areas involving higher degree of judgement, or areas where assumptions or estimates were significant to the financial statements are disclosed in Note 2 on page 56. The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts shown in these financial statements are rounded to the nearest £’000.

b) Preparation of the financial statements on a going concern basis

The trustees continue to prepare the financial statements on the basis that The Methodist Church in Great Britain is a going concern. Evidently, the Church has adequate financial resources and is able to manage business risks. The planning processes, including financial projections, take into consideration the prevailing economic climate and its potential impact on the various sources of income and planned expenditure. The trustees have looked at least 12 months ahead and are satisfied that the Church has adequate resources to continue in operational existence for the near future and there are no material uncertainties that call into doubt the Church’s ability to continue in operation. Overall in-year financial performance for 2024/25 was favourable to plan (before accounting for the losses on investments that partly reversed some of the significant investment gains from 2023/24). Income was in line with plan and expenditure favourable to plan due the favourable pension valuation meaning deficit contributions were not required. The budget for 2025/26 has been set consistent with the assumptions agreed by the Conference in 2023. The pay award in September 2025 is 3.5% and assessment income from districts falls 3% again this year. However, transitional funding continues to be deployed from the Connexional Priority Fund to offset the underlying deficit for the next 3 years whilst a transformation programme is planned and implemented.

The ongoing sale of churches and manses across the Connexion continues to provide a flow of money into both local church/circuit funds and the Connexional Funds that further supports the medium-term financial viability of the charity. The funding position of both pension schemes (see below) has led to further measures to permanently decrease the level of risk. This may allow the

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

release of further funds held in the Pension Reserve Fund once the 2026 Triennial Valuation is complete.

c) Group financial statements

The Statement of Financial Activities (SOFA) and balance sheet consolidate the financial statements of the Church and its subsidiary undertakings as set out in the diagram below. The consolidation principles applied are based on the SORP, whereby the parent charity consolidates the subsidiaries it controls. Control in this context is the power to govern the financial and operating policies of an entity in order to benefit from its activities.

This control is the power to appoint and remove trustees. The Connexional Council, as managing trustee, had the ability to govern the financial and operating policies of the entities during the period of these accounts.

For consolidated companies limited by shares, control is by virtue of shareholdings. For consolidated companies limited by guarantee, control is by virtue of sole or majority membership.

The beneficial element of this control is demonstrated by the concurrence of purpose. All the subsidiary entities included in the consolidation contribute to the purposes and aims of the Methodist Church in Great Britain and benefit its beneficiaries.

The results of the subsidiary entities are consolidated on a line-by-line basis in accordance with section 9 of FRS 102. Any inter-entity balances and transactions have been eliminated on consolidation. All the entities have the same reporting date and uniform group accounting policies have been adopted.

d) The group structure

The Methodist Conference (Governing Body)

----- Start of picture text -----
The Connexional Council
Other Entities
(Charity & Managing Trustee of The Methodist Church in Great
(Not consolidated)
Britain)
Connexional Funds Seperately registered entities Local churches, circuits and Methodist Ministers' Housing
(Consolidated) districts Society
TMCP &
Connexional Central Services All We Can Methodist Schools
Central Finance Board
The London Mission Fund Cliff College
Methodist international Centre
The Guy Chester Centre
Ltd
Southlands Methodist Trust
----- End of picture text -----

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued) Excluded entities

There are a number of entities which form part of the wider picture of the Methodist Church in Great Britain, some of which are mentioned below. These entities are excluded from consolidation because the Council has no control over their financial and operating policies.

Methodist churches, circuits and districts Methodist Independent Schools Trust Trustees for Methodist Church Purposes (TMCP) The Central Finance Board (CFB) The Methodist Ministers’ Housing Society Westminster College Oxford Trust Ltd Westminster College Oxford Trust

f) Recognition of income and endowments

All income is accounted for when the Church has entitlement to the funds, the amount can be quantified, and receipt of the funds is probable. Where income is received in advance of providing goods and/or services, it is deferred until the Church becomes entitled to that income.

All income is reported gross.

Rental income from operating leases (net of incentives given to the lessees) is recognised on a straight-line basis over the lease term.

No amounts are included in the financial statements for services donated by volunteers.

District Assessment

The assessment is accounted for on a receivable basis. The amount can be measured reliably by the Church as they are published annually in advance in the Minutes of Conference. Standing Order 371 (2) states that the Methodist Church Fund shall be maintained “by an assessment levied by the Conference on each Circuit in the home church through the Districts [...]”. The assessment primarily funds the decisions of the Conference, part of which is the provision of certain services such as the administration of the connexionally held funds and the processing of ministerial stipends.

Donations

Donations are recognised when there is evidence of entitlement, receipt is probable and the amounts can be measured reliably. Where a donor has specified certain terms and conditions, the Church evaluates whether these conditions can be met before claiming entitlement. In any event, donations or gifts with conditions or terms which are outside of the Church’s stated purposes, or which are illegal are rejected by the Church.

Goods donated for on-going use by the Church in carrying out its activities are recognised as tangible fixed assets or as investments with the corresponding gain recognised as income from donations within the SOFA, subject to the capitalisation threshold of £1,000.

Legacies

Entitlement to a legacy is assumed when there is sufficient evidence that a gift has been left to the Church, usually through the notification of a will. Receipt of a legacy is deemed probable when there has been a grant of probate and it has been established that there are sufficient assets in the estate to pay the legacy and there are no conditions attached to the legacy that are outside the control of the Church, or uncertainty around the receipt of this gift. Income from pecuniary legacies is recognised upon notification or receipt if earlier.

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued) Where legacies have been notified to the Church or the Church is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

Capital (property) levies

Capital levies are due on the disposition of property by churches, circuits and districts under Standing Order 970 of the Constitutional Practice and Discipline of the Methodist Church. These are accounted for on a receipts basis when the disposal proceeds are deposited with the Church’s custodian, Trustees for Methodist Church Purposes. Capital levies are disclosed net of any refunds due back to the church, circuit or district.

Grants

Income from grants is recognised when there is evidence of entitlement to the grant, receipt is probable and its amount can be measured reliably. To this end, evidence of entitlement is assumed to exist when the formal offer of funding is communicated in writing to the Church. Where there is a performance condition attached to the grant, entitlement is only recognised when the conditions have been met.

g) Accounting for leases

Rental income from assets leased under operating leases is recognised on a straight-line basis over the term of the lease. Rent-free periods or other incentives given to the lessee are accounted for as a reduction to the rental income and recognised on a straight-line basis over the lease term.

h) Recognition of expenditure

All expenditure is accounted for on an accruals basis when an obligation that can be measured or reliably estimated exists at the reporting date and it is more likely than not that payment will be made in settlement.

There are two main categories of expenditure shown in the statement of financial activities: expenditure on raising funds and charitable activities.

Expenditure on raising funds includes all expenditure incurred to raise income to spend on charitable purposes. Expenditure on charitable activities includes all costs incurred by the Church in undertaking activities that further its charitable aims for the benefit of its beneficiaries. This expenditure is further analysed into direct and support costs. Direct costs are those specifically related to producing the delivery of an activity or service, for example the costs incurred in training ministers; mission partners working overseas or the payment of grants to beneficiaries. Support costs are those which provide indirect support to front-line services – for example financial services, facilities management, development and personnel, governance costs and management information services. Support costs not attributable to a single activity have been allocated on a basis consistent with identified cost drivers for that cost category such as staff head count and floor space.

Grant commitments

Grants awarded are provided for in the SOFA in the year in which they are approved by the trustees, and the offer is communicated to the recipient. Grants awarded but not paid are recorded as a liability within the balance sheet. Grants awarded subject to explicit conditions being met by the recipient before payments are made are not accrued until such conditions have been met. Such commitments are disclosed in the financial statements as contingent liabilities.

i) Fund accounting

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general charitable objectives. Designated funds are a portion of the unrestricted funds that have been set aside for a particular purpose by the trustees. Restricted funds are donated for a particular

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued) purpose, the use of which is restricted to that purpose. The purposes of the main restricted and designated funds are set out in the notes to the financial statements. Endowment funds are either permanent or expendable. Permanent funds are normally held indefinitely, while trustees have the power to convert expendable funds into income. The return on endowment investments is made up of income earned.

The costs of raising and administering the restricted funds are charged against the specific fund. Any investment income or gain is allocated to the appropriate fund in the case of restricted funds and in accordance with the terms of the endowment in the case of endowment funds.

j) Pension costs

Defined benefit pension schemes

The Connexional Council participates in three main pension schemes: the Methodist Ministers’ Pension Scheme (MMPS); the Pensions and Assurance Scheme for Lay Employees of the Methodist Church (PASLEMC); and the Superannuation Scheme for Lay Mission Partners of the Methodist Church (SSMP).

The PASLEMC scheme is a group plan for accounting purposes, with the Connexional Council as the sponsoring employer with legal responsibility for the plan. There is no contractual arrangement or stated policy for charging the net defined benefit cost of the plan as a whole to individual group entities and therefore the Council has recognised the entire net defined benefit cost and the relevant net defined benefit liability in its individual financial statements. Participation in a group pension plan is a related party transaction.

The pension assets and liabilities in respect of the PASLEMC and SSMP schemes are recorded in line with FRS 102, with scheme valuations undertaken by independent actuaries. FRS 102 measures the value of pension assets and liabilities at the balance sheet date and determines the benefits accrued in the year and the interest on assets and liabilities. Current service costs, together with the net interest cost for the year, are allocated to relevant expenditure headings within the SOFA. The MMPS scheme assets and liabilities are excluded for reasons set out on pages 57-58.

Scheme assets are measured at fair value at the balance sheet date. Scheme liabilities are measured on an actuarial basis at the balance sheet date, using the projected unit credit method, and discounted at a rate equivalent to the current rate of return on a high-quality corporate bond of equivalent term to the scheme liabilities. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other recognised gains and losses in the SOFA. These amounts together with the return on plan assets less amounts included in net interest, and any unrecognised net surplus, are disclosed as re-measurements of the PASLEMC defined benefit liability. The resulting defined benefit asset or liability is presented separately on the face of the balance sheet. Any asset resulting from this calculation is limited to the present value of available refunds or reductions in future contributions to the plan.

The MMPS is a group scheme as all of the participating entities, mainly the circuits and the Council, are under the common control of the Conference. However, the Council has adopted a different accounting policy for this Scheme set out in detail in Note 12 for the reasons set out on pages 6668.

For the MMPS, costs equal to the contributions paid are recognised in the accounts as they fall due. Pension costs are allocated to activities and between funds according to an employee’s normal job function.

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

Defined contribution pension schemes

Pension costs in respect of defined contribution schemes are charged to the SOFA for the period in which they are payable. Such costs are allocated to activities and between funds according to an employee’s normal job function.

k) Stocks

Stock consists of purchased goods for resale. Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete or slow moving items.

l) Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to the SOFA.

m) Tangible fixed assets

All tangible fixed assets costing more than £1,000 are capitalised and included initially at cost, including any incidental expenses of acquisition and irrecoverable VAT. Subsequently, charitable (functional) land and buildings are held at valuation. The Church undertakes to perform the valuations every five years to ensure that the carrying amount does not differ materially from the fair value of the asset at the end of the reporting period. Work to existing properties which is capable of extending the useful life or otherwise adding to the value of the property is capitalised. All other expenditure incurred in respect of general repairs to functional assets is charged to the SOFA in the year it is incurred. Assets under construction are stated at cost and transferred to completed properties when ready for use.

n) Depreciation

Tangible fixed assets are depreciated to their estimated residual values over their expected useful lives. The depreciation expense is charged or apportioned to the relevant SOFA heading reflecting the asset’s use on a straight-line basis as follows:

Freehold land nil Freehold buildings nil Computer equipment over 3 years Furniture and fittings over 5 years Motor vehicles over 5 years

o) Impairment

An assessment is made at each reporting date of whether there are indications that a fixed asset may be impaired or that an impairment loss previously recognised has fully or partially reversed. If such indications exist, the Church estimates the recoverable amount of the asset. Shortfalls between the carrying value of fixed assets and their recoverable amounts, being the higher of fair value less costs to sell and value-in-use, are recognised as impairment losses. Impairments of revalued assets are treated as a revaluation loss. All other impairment losses are recognised in the Statement of Financial Activities. Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Reversals of impairment losses are recognised in the Statement of Financial Activities or, for revalued assets, as a revaluation gain.

On reversal of an impairment loss, the depreciation or amortisation is adjusted to allocate the asset’s revised carrying amount (less any residual value) over its remaining useful life.

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

p) Intangible fixed assets and amortisation

Intangible assets are held on the balance sheet at cost less accumulated amortisation and impairment losses.

Computer software, including development costs, is capitalised as an intangible asset and amortised on a straight-line basis over the expected useful life of five years. Impairment reviews are conducted when events and changes in circumstances indicate that an impairment may have occurred. If any asset is found to have a carrying value materially higher than its recoverable amount, it is written down accordingly.

q) Heritage assets

There are four Methodist Heritage sites in Great Britain which fit into this definition. These are: The Old Rectory, Epworth, Lincolnshire - the childhood home of John and Charles Wesley; The New Room (John Wesley’s Chapel), Bristol - the first ever Methodist building in the world; Wesley’s Chapel & House, and The Museum of Methodism, London - John Wesley’s London base (from which he travelled 250,000 miles to preach, and the place of his death and burial) and Englesea Brook Chapel & Museum of Primitive Methodism, near Crewe - exhibitions and activities focusing on one strand of 19th Century Methodism. These assets have not been consolidated in the financial statements because they belong to entities that are not under the control of the Connexional Council.

r) Investments

Investments are stated at fair value at the balance sheet date, and the statement of financial activities shows net investment gains and losses arising from revaluation of the investment portfolio and disposals during the year. Investment properties are initially recognised at cost which includes purchase cost and any directly attributable expenditure. Subsequently, investment properties are measured at fair value. The surplus or deficit on revaluation is recognised in the statement of financial activities for the year. Investment properties are normally revalued triennially by independent professionals who hold recognised and relevant professional qualifications and have recent experience in the location and class of the investment property being valued. In the intervening periods, the trustees carry out the valuations. Investments held in units in the Central Finance Board are stated at the Board’s published valuations. The value of the unlisted investments in William Leech (Investments) Ltd are stated at the underlying value of the net assets based on the company’s audited balance sheet at 31 March 2025 updated by the value of any share acquisitions (at cost) up to 31 August 2025. The assets are held at fair value.

s) Irrecoverable VAT

Irrecoverable VAT has been charged to the expenditure to which it relates within the statement of financial activities.

t) Cash and cash equivalents

Cash and cash equivalents includes cash and cash held on deposit with the Central Finance Board of the Methodist Church and the Trustees’ Investment Fund of the Trustees for Methodist Church Purposes and which has a maturity of less than three months from the date of acquisition and used for working capital purposes. Cash and cash on deposit are cash and cash equivalents for the purposes of the cash flow statements.

u) Financial instruments

The Church has basic financial instruments and financial assets. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Trade and other debtors are recognised at the settlement amount due after any trade discount offered.

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

Creditors are recognised where the Church has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.

Financial assets comprise investments held by the Church in units invested by the Central Board of Finance of the Methodist Church. The fair value of the investments is based on the closing quoted bid price at the accounting dates. Unrealised gains and losses arising from changes in market value are recognised in the income and expenditure account.

v) Concessionary loans made

Methodist ministers or probationers appointed for the first time to a station within the control of the Church are eligible to receive financial assistance from the Methodist Church Fund. This assistance may be given by way of grant or interest-free loan or a combination of both according to criteria set by the Connexional Council. The maximum amount for a loan is £10,000 repayable over five years. Additionally, loans may be advanced to other Methodist bodies from trusts under the control of the Council in line with the trust’s individual objectives. Initial recognition and measurement of the loans is based on the actual value of the loan advanced. In subsequent years, the carrying amount is adjusted to reflect repayments. If a loan that has been made is found to be irrecoverable an adjustment will be made for impairment.

w) Termination benefits and payments

The Council may be committed, by legislation, contractual or other agreements with employees or their representatives or by a constructive obligation based on business practice, custom or a desire to act equitably, to make payments to employees when it terminates their employment.

Termination benefits are those that arise as a result of either the Council’s decision to terminate an employee’s employment before the normal retirement date or an employee’s decision to accept voluntary redundancy during an organisational restructure. These are recognised as an expense and charged to the Statement of Financial Activities when the Council is demonstrably committed to terminating the employment of an employee or group of employees before the normal retirement date; or to providing termination benefits as a result of an offer made in order to encourage voluntary redundancy. Termination benefits that arise as part of a settlement agreement are recognised once the period of consultation between the employee and their representative is completed and terms are agreed upon.

2. Accounting estimates and judgments

In preparing the financial statements, the trustees are required to make estimates and judgments. The areas considered below are considered the most important in understanding the judgments that underlie the financial statements as well as the uncertainties inherent in accounting estimates that could affect the figures reported in the operating results, financial position and cash flows of the next or future accounting periods.

The accounting policies are set out in Note 1 to the financial statements.

Grant commitments

The Church empowers and supports the mission of overseas partners by way of annual support grants over a number of years. In addition to the expenditure recognised in the financial statements, the Church has commitments in respect of these programmes at the year end. The partner churches are obliged to report back to the Connexional Grants Committee on the use of the grants before the next instalment is released.

Judgment is exercised as to satisfactory progress being made against the agreed project outcomes.

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued) Cost allocation

Costs that are not attributable to a single activity are reallocated or apportioned to activities on a basis consistent with identified cost drivers for that activity. Cost drivers utilised include the headcount and floor space and judgement is exercised in applying cost drivers to cost categories.

Actuarial assumptions in respect of defined benefit pension schemes

The application of actuarial assumptions relating to defined benefit pension schemes incorporated in the financial statements is in accordance with FRS 102. In applying FRS 102, advice is taken from independent qualified actuaries. In this context, significant judgement is exercised in a number of areas, including future changes in salaries and inflation, mortality rates and the selection of appropriate discount rates. Movements on the defined pension schemes are shown in Note 28.

Defined benefit pension scheme commitments

The Pension and Assurance Scheme for Lay Employees of the Methodist Church (PASLEMC)

The Connexional Council is the principal employer of the Pension and Assurance Scheme for Lay Employees of the Methodist Church, with its employees both past and present accounting for more than 80% of the scheme members. As mentioned in Note 12, there are other employing bodies, four of whom are not consolidated in these financial statements. These are The Central Finance Board of the Methodist Church; Trustees for Methodist Church Purposes (TMCP), the Methodist Ministers Housing Association (MMHA) and Methodist Central Hall Trustees. There is no contractual agreement or stated policy for charging the defined benefit cost of the plan as a whole to individual group entities and therefore the Council has recognised the entire net defined benefit cost and relevant net defined benefit asset/liability of the Pension and Assurance Scheme for Lay Employees of the Methodist Church in its financial statements. This is because the Council is the sponsoring employer of this Scheme as it has legal responsibility for the plan. The Council closed the scheme to new entrants from 31 May 2019 following consultations taking place with members.

In April 2024 the majority of the scheme liabilities were subject to an insurance buy-in thereby significantly reducing the financial risk to the Council. Subsequently, at the request of the Council, the PASLEMC Trustee commenced the process of undertaking an insurance buy-out, expected to complete in 2026, ahead of the final wind-up of the scheme.

The Methodist Ministers’ Pension Scheme (MMPS)

The MMPS is a defined benefit pension scheme for Methodist Ministers. It should be accounted for as a group plan as all the participating employers, namely the circuits and Council, are under the common control of the Conference. The scheme has not been included in these financial statements for the reasons set out below:

There are 1,046 ministers who are active members of MMPS of whom the Council is responsible for the pension contributions of 59, the majority of ‘employer’ contributions coming from the circuits to which they are stationed annually by The Conference. The actual contributions made by the Council for the year were £0.5 million compared to £7.5m million paid by the circuits.

a) The diagram on page 51 shows a simple structure of the Church - the entities that have been consolidated and the reasons for that as well as the entities that have been excluded. Hence, the Church as generally recognised, comprising the individual local churches and circuits and other entities reporting to The Conference, does not prepare consolidated financial statements. Each local church/circuit/district is an individual charity (those with annual income over £100k being registered as such) which shares the same governing document as the Methodist Church in Great Britain.

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

b) According to the Scheme rules, the MMPS is intended to be a single-employer scheme and the Methodist Church is the sole statutory employer for the purposes of pension law. The Scheme Rules further require member contributions to be paid by the person responsible for the Member’s remuneration. This is effectively the circuits where the individual ministers are stationed. As such the responsibility for current payments and for the deficit/surplus in the pension scheme is shared between the Council and the circuits with the bulk of the contributions coming from the circuits.

There is no contractual agreement or stated policy for charging the defined benefit cost of the plan as a whole to individual circuits and other participating employers; such decision would be made by the Conference.

c) The schedule of contributions that was agreed in August 2024 reflecting the outcome of the 31 August 2023 Valuation showed the scheme was in surplus and that no recovery plan was required.

As stated in the reserves policy section of the Trustees’ Report on page 28, the Pension Reserve Fund was set up following a Conference decision to establish a fund outside of the pension schemes, which could be used to meet future funding deficits. The fund was designated by the Conference and had been funded by a transfer of 45% of property sales income levy from the Connexional Priority Fund. Given the current level of funding relative to the decreased risk, these funding transfers were suspended from 1 September 2023. Should a future deficit arise, it will not be funded solely from general funds of the Council. It is probable that, if the deficit were to be required to be settled in full, the cost would be allocated at the discretion of the Conference across the Connexion and not from funds of the Council, except to the extent of the Pension Reserve.

Useful economic lives

The annual depreciation charge for tangible fixed assets, particularly buildings is sensitive to change in the estimated useful economic lives and residual value of the assets. As our policy is to revalue the buildings every five years and to undertake full quinquennial inspection in the intervening years, the useful economic lives will be assessed and amended where necessary, to reflect current circumstances. Note 13a shows the relevant tangible fixed assets.

Revaluation of functional property assets and investment properties

The Church carries its functional property assets and investment properties at fair value, with changes in fair value being recognised in the Statement of Financial Activities. The Church obtains valuations to determine fair value on a cyclical basis; normally being every five years for functional properties and three years for investment properties. The trustees consider that this is sufficiently regular to ensure that their carrying amount does not differ materially from their fair value at the reporting date. Some of the key assumptions used to determine the fair value of the assets are based on the valuer’s knowledge and experience of the market, values of similar properties that could be deemed subjective.

Revaluation gains on functional properties and investment properties are shown in Notes 24 and 14 respectively, and the relevant assets are included in Notes 13 and 14.

Leases

In categorising leases as finance leases or operating leases, management makes judgements as to whether significant risks and rewards of ownership have transferred to the lessee, where the Group is the lessor.

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

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3a. Donations and legacies - The Methodist 2025 2024
Unrestricted Restricted Unrestricted Restricted
Church in Great Britain Total Total
£000 £000 £000 £000 £000 £000
Donations 56 2,599 2,655 282 3,184 3,466
Legacies 825 1,408 2,233 316 1,266 1,582
Total 881 4,007 4,888 598 4,450 5,048
3b. Donations and legacies - The Connexional Unrestricted Restricted 2025 Unrestricted Restricted 2024
Funds Total Total
£000 £000 £000 £000 £000 £000
Donations 841 1,062 1,903 1,629 1,747 3,376
Legacies 825 529 1,354 316 255 571
Total 1,666 1,591 3,257 1,945 2,002 3,947
3c. Miscellaneous income - The Methodist Church 2025 2024
Unrestricted Restricted Unrestricted Restricted
in Great Britain Total Total
£000 £000 £000 £000 £000 £000
Student fees - 17 17 - 207 207
Seminars and events 323 - 323 88 - 88
Conference income 17 - 17 15 - 15
Administration & IT services 1 - 1 1 - 1
Bureau & Accountancy services 370 - 370 378 - 378
Pension contributions from circuits 1,366 - 1,366 - - 0
Others 75 295 370 142 255 397
Total 2,152 312 2,464 624 462 1,086
3d. Miscellaneous income - The Connexional 2025 2024
Unrestricted Restricted Unrestricted Restricted
Funds Total Total
£000 £000 £000 £000 £000 £000
Seminars and events 323 - 323 88 - 88
Conference income 18 - 18 15 - 15
Administration & IT services 4 - 4 1 - 1
Bureau & Accountancy services 370 - 370 378 - 378
Pension contributions from circuits 1,366 - 1,366 - - -
Others 137 136 273 144 84 228
Total 2,218 136 2,354 626 84 710
3e. Charitable activities - The Methodist Church in 2025 2024
Unrestricted Restricted Unrestricted Restricted
Great Britain Total Total
£000 £000 £000 £000 £000 £000
District assessment 14,533 120 14,653 14,057 129 14,186
Rental Income - 224 224 - 130 130
Total 14,533 344 14,877 14,057 259 14,316
2025 2024
Unrestricted Restricted Unrestricted Restricted
3f. Charitable activities - The Connexional Funds Total Total
£000 £000 £000 £000 £000 £000
District assessment 14,533 120 14,653 14,057 129 14,186
Rental Income - 224 224 - 130 130
Total 14,533 344 14,877 14,057 259 14,316
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The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

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4a. Investment income - The Methodist Church in 2025 2024
Unrestricted Restricted Unrestricted Restricted
Great Britain Total Total
£000 £000 £000 £000 £000 £000
Central Finance Board 2,659 1,854 4,513 3,312 1,664 4,976
Interest and other investment income 83 16 99 32 8 40
Rental Income 143 640 783 142 902 1,044
William Leech Charities Fund - 942 942 - 934 934
Total 2,885 3,452 6,337 3,486 3,508 6,994
2025 2024
Unrestricted Restricted Unrestricted Restricted
4b. Investment income - The Connexional Funds Total Total
£000 £000 £000 £000 £000 £000
Central Finance Board 2,622 1,264 3,886 3,240 1,474 4,714
Interest and other investment income 83 9 92 32 8 40
Rental Income 1,325 562 1,887 1,132 516 1,648
William Leech Charities Fund - 942 942 - 935 935
Total 4,030 2,777 6,807 4,404 2,933 7,337
5a Other trading activities - The Methodist Church 2025 2024
Unrestricted Restricted Unrestricted Restricted
in Great Britain Total Total
£000 £000 £000 £000 £000 £000
Publishing 314 - 314 228 - 228
Room and conference hire 7,465 1,737 9,202 7,913 1,835 9,748
Advertising and fees 9 - 9 9 - 9
Total 7,788 1,737 9,525 8,150 1,835 9,985
5b Other trading activities - The Connexional 2025 2024
Unrestricted Restricted Unrestricted Restricted
Funds Total Total
£000 £000 £000 £000 £000 £000
Publishing 314 - 314 228 - 228
Room and conference hire - 1,304 1,304 - 1,299 1,299
Advertising and fees 9 - 9 9 - 9
Total 323 1,304 1,627 237 1,299 1,536
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6a Capital levies

Standing Order 973 permits capital levies to be refunded for qualifying projects. Some of these levies may be refunded at any time. Therefore, a contingent liability exists in respect of income already recognised in the Connexional Priority Fund.

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||||||| |---|---|---|---|---|---| |6b Grant income - The Methodist Church in Great|2025|2024| |Unrestricted|Restricted|Unrestricted|Restricted| |Britain|Total|Total| |£000|£000|£000|£000|£000|£000| |Chiesa Valdese - All We Can|- 204|204|- 213|213| |Benefact Trust|720 276|996|- -|-| |Other*|- 619|619|3 563|569| |Total|720 1,099 1,819 3 776 782|

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Cliff College received government assistance from the Office for Student £14k (2024: £14k)

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||||||| |---|---|---|---|---|---| |2025|2024| |Unrestricted|Restricted|Unrestricted|Restricted| |6c Grant income - The Connexional Funds|Total|Total| |£000|£000|£000|£000|£000|£000| |Benefact Trust|720 176|[ 896 ]|- - -| |Other|- -|[ - ]|3|11|14| |Total|720 176 896 3 11 14|

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The Methodist Church in Great Britain Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

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7a. Expenditure - The Methodist Church in Great Grant Direct Support 2025 Grant Direct Support 2024
Britain Costs Costs Costs Total Costs Costs Costs Total
£000 £000 £000 £000 £000 £000 £000 £000
Raising funds - 8,171 192 8,363 - 8,304 340 8,644
Charitable activities
Building communities 765 1,839 340 2,944 493 1,304 397 2,194
Children & Youth 95 1,909 361 2,365 95 1,676 428 2,199
Evangelism & Growth 8,635 1,203 1,769 11,607 20,251 2,091 686 23,028
Global relations 1,801 4,291 490 6,582 4,542 5,263 903 10,708
Learning Network 150 2,457 469 3,076 150 2,003 748 2,901
Connexional Council & Governance 261 4,835 916 6,012 49 4,420 1,136 5,605
Ministry 2,657 4,995 976 8,628 3,053 5,418 625 9,096
Property 1,526 1,081 225 2,832 155 624 163 942
Others - Pensions 5 1,625 - 1,630 - 1,890 - 1,890
Net loss on the revaluation of tangible fixed assets - 5,591 - 5,591 - - - -
15,895 29,826 5,546 51,267 28,788 24,689 5,086 58,563
Total 15,895 37,997 5,738 59,630 28,788 32,993 5,426 67,207
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The basis of allocation of support costs is described in Note 8. Grant expenditure is further analysed in Note 10. Included within Global relations is Y Care opening reserves of £439k representing the deconsolidated from the accounts of MCIGB.

7b. Expenditure - The Connexional Funds	Grant Costs Direct Costs Support Costs 2025 Total Grant Costs Direct Costs Support Costs 2024 Total £000 £000 £000 £000 £000 £000 £000 £000
Raising funds Charitable activities Building communities Children & Youth Evangelism & Growth Global relations Learning Network Connexional Council & Governance Ministry Property Others - Pensions Net loss on the revaluation of tangible fixed asset	- 2,605 1922,797- 2,176 3402,516 765 1,838 340 2,943 493 1,302 397 2,192 95 1,909 361 2,365 95 1,676 428 2,199 8,635 1,205 1,769 11,609 20,251 2,091 686 23,028 467 2,260 490 3,217 3,244 2,976 903 7,123 150 2,457 469 3,076 150 2,002 748 2,900 261 4,835 916 6,012 49 4,420 1,136 5,605 3,288 2,146 976 6,410 3,395 2,447 625 6,467 1,526 1,082 225 2,833 155 623 163 941 5 1,625 -1,630- 1,890 -1,890 s- 5,591 - 5,591 - - --
	15,192 24,948 5,546 45,686 27,832 19,427 5,086 52,345
Total	15,192 27,553 5,738 48,483 27,832 21,603 5,426 54,861

The basis of allocation of support costs is described in Note 8. Grant expenditure is further analysed in Note 10.

Note * The expenditure incured in raising funds for the Methodist Church in Great Britain - £8.4m (2024: £8.6m) and for the Connexion - £2.7m (2024: £2.5m) is broken down as follows:

	The Methodist	Church	The Connexional	The Connexional
	in Great	Britain		Funds
	2025	2024	2025	2024
Cost of raising voluntary income	£0.4m	£0.3m	£0.3m	£0.3m
Cost of investment management	£0.4m	£0.4m	£0.4m	£0.4m
Cost of other trading activities	£7.6m	£7.9m	£2.0m	£1.8m

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

8a. Support costs by activity - The Methodist Church in Great Britain and The Connexional Funds

----- Start of picture text -----
Building Children Evangelism Global Learning Ministry Property Connexional Raising 2025
communities & Youth & Growth relations Network Council & funds Total
Governance
£000 £000 £000 £000 £000 £000 £000 £000 £000 £000
Facilities Per capita 36 37 182 50 48 100 23 94 20 590
Development & Personnel Per capita 84 89 438 121 116 242 56 227 48 1,421
Financial Services Per capita 147 157 768 213 204 424 98 398 83 2,492
Information Technology Per capita 73 78 381 106 101 210 48 197 41 1,235
Total 340 361 1,769 490 469 976 225 916 192 5,738
8b. Support costs by activity - The Methodist Church in Great Britain and The Connexional Funds
Building Children Evangelism Global Learning Ministry Property Connexional Raising 2024
communities & Youth & Growth relations Network Council & funds Total
Governance
£000 £000 £000 £000 £000 £000 £000 £000 £000 £000
Facilities Per capita 67 74 59 89 133 66 22 192 37 739
Development & Personnel Per capita 108 120 96 144 217 108 36 313 60 1,202
Financial Services Per capita 114 114 435 526 183 343 69 320 183 2,287
Information Technology Per capita 108 120 96 144 215 108 36 311 60 1,198
Total 397 428 686 903 748 625 163 1,136 340 5,426
----- End of picture text -----

9. Subsidiaries

The results of the Council's subsidiaries (before consolidation adjustments) are included within the Statement of Financial Activities as follows:

Cliff College Southlands Methodist Trust All We Can Methodist International Centre Ltd 2025 2025 2025 2025 2025
£000 £000 £000 £000 Income from: Donations and legacies 185 - 2,230 - Investments 91 521 63 37 Other trading activities 566 - - 7,500 Other: Grants 1,103 - 425 - Miscellaneous income 779 - 66 -
Total income 2,724 521 2,784 7,537 Expenditure on: Raisingfunds 452 48 663 7,597
Charitable activities Ministry 2,327 398 - - Global relations - 279 2,268 -
Total expenditure on charitable activities 2,327 677 2,268 -
Total expenditure 2,779 725 2,931 7,597 Net gains/(losses) on investments (116) 44 - -
Net income/(expenditure) (171) (160) (147) (60) Distribution under Gift aid - - - -
Net movement in funds (171) (160) (147) (60) Net assets Fixed assets 9,773 4 - 678 Investments 16 1,438 - - Current assets 508 10,340 2,033 1,508 Creditors and loans (604) (154) (185) (1,626) Total 9,693 11,628 1,848 560

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

9. Subsidiaries (continued)

9. Subsidiaries (continued)
	Cliff College	Southlands	All We Can	Methodist
		Methodist Trust		International
				Centre Ltd
2024	2024	2024	2024	2024
	£000	£000	£000	£000
Income from:
Donations and legacies	~~-~~	6	2,227	-
Investments	90	429	56	72
Other trading activities	633	1	15	7,957
Other:
Grants	1,076	-	397	-
Miscellaneous income	332	-	-	-
Total income	2,131	436	2,695	8,029
Expenditure on:
Raisingfunds	265	15	688	7,155
Charitable activities
Ministry	2,495	716	-	-
Global relations	-	91	2,275	-
Total expenditure on charitable activities	2,495	807	2,275	-
Total expenditure	2,760	822	2,963	7,155
Net gains/(losses) on investments	89	193	9	(437)

Net income/(expenditure)	(540)	(193)	(259)	437
Distribution under Gift aid	-	-	-	-
Net movement in funds	(540)	(193)	(259)	437
Net assets
Fixed assets	10,037	8	-	593
Investments	16	1,403	-	-
Current assets	364	10,658	2,126	1,527
Creditors and loans	(554)	(280)	(133)	(1,564)
Total	9,863	11,789	1,993	556

Cliff College

Charity Number 529386

Cliff (Methodist) Developments Limited

Company Number 4934377

The College was founded in 1883 to provide training for mission and evangelism to people from diverse backgrounds. It offers degrees validated by the University of Manchester in the areas of theology and mission as well as providing a wide variety of short courses and training events.

All We Can

Charity Number 291691

All We Can works through partnerships to end the cycle of suffering caused by poverty, inequality and injustice.

Southlands Methodist Trust

Charity Number 1100660

Southlands Methodist Trust supports educational activities, including research, chaplaincy and charitable work undertaken in and through Southlands College that reflect its Methodist foundation and ethos.

Methodist International Centre Limited

Company Number 3866984

A company set up for the Connexional Council to conduct trading in support of its charitable activities. It is an accredited ethical social enterprise hotel which also provides student accommodation.

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

Y Care International

Company Number 3997006

Y Care international is a subsidiary of All We Can.

Y Care International is the international relief and develoment agency of the Young Men's Christian Association (YMCA) in the UK and Ireland. They work in partnership with YMCAs that are already playing key roles in their communities. Their mission is to create opportunities with vulnerable young women and men to change lives for the better, fulfil their potential and play a full role in society. The YMCA work to bring social justice and peace to young people and their communities, regardless of religion, race, gender or culture.

On the 31 March 2025, Y Care ceased to be under the control of the Council. This entity is not a subsidiary and therefore no longer forms part of the consolidation of the accounts. All balances have been eliminated and are included as part of the costs of Global relations in Note 7a. The balances as at the beginning of the current year are as follows:

	Y Care balances eliminated from consolidation £'000 Current assets Prepayments and accrued interest 320 Cash at bank and in hand 457 777 Creditors Accruals (13) Trade creditors (262) Grant commitments (63) (338)
	Net assets 439

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

10a. Grant expenditure: The Methodist Church in Great Britain

----- Start of picture text -----
2025 2024
Activity Individuals Institutions Total Total
Global relations £000 £000 £000 £000
Regional grants - 165 165 2,932
Scholarship programmes - 259 259 265
Ministerial and personnel support grants - 48 48 47
Annual grants - 1,329 1,329 1,297
Total - 1,801 1,801 4,541
Other grants £000 £000 £000 £000
Building communities 7 758 765 492
Children & Youth - 95 95 95
Evangelism & Growth 4,382 4,253 8,635 20,252
Learning Network - 150 150 150
Connexional Council & Governance 261 - 261 49
Ministry 690 1,967 2,657 3,052
Property 120 1,406 1,526 155
Others - Pensions 5 - 5 -
Total 5,465 8,629 14,094 24,245
Grand Total 5,465 10,430 15,895 28,786
10b. Grant expenditure: The Connexional Funds
2025 2024
Activity Individuals Institutions Total Total
Global relations £000 £000 £000 £000
Regional grants - 165 165 2,932
Scholarship programmes - 259 259 265
Ministerial and personnel support grants - 43 43 47
Total - 467 467 3,244
Other grants £000 £000 £000 £000
Building communities 7 758 765 492
Children & Youth - 95 95 95
Evangelism & Growth 4,382 4,253 8,635 20,252
Learning Network - 150 150 150
Connexional Council & Governance 261 - 261 49
Ministry 1,531 1,757 3,288 3,396
Property 120 1,406 1,526 155
Others - Pensions 5 - 5 -
Total 6,306 8,419 14,725 24,589
Grand Total 6,306 8,886 15,192 27,833
----- End of picture text -----

The figures in Note 10 are not intended to be the same as those listed for grants on page 17-19.

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

	The Methodist Church in	The Methodist Church in	The	Connexional
11. Included in the SOFA are the following:		Great Britain		Funds
	2025	2024	2025	2024
Audit and consultancy fees	£000	£000	£000	£000
Payable to RSM UK Audit LLP	92	89	92	89
Payable to RSM UK Tax & Accounting Ltd for taxation advice	4	7	4	7
Payable to other auditors - for internal audit services	36	19	36	19
Payable to other auditors - for audit of consolidated entities	98	80	-	-
Payable to other auditors - for financial advice to consolidated entities	-	9	-	-
Depreciation	343	295	138	99
Amortisation	86	49	29	25
Loan interest payable	6	12	-	-

12. Stipends and salary costs

The Connexional Council appointed or employed on average 365 (2024:398) people during the year, of which Connexional Funds had 242 (2024: 256) and the costs were:

(2024: 256) and the costs were:
	The Methodist Church in		The	Connexional
		Great Britain		Funds
	2025	2024	2025	2024
	£000	£000	£000	£000
Stipends and salaries	15,550	16,294	11,167	11,115
Redundancy costs (loss of office)	77	53	79	2
Temporary staff costs	143	122	74	33
Social security costs	1,747	1,579	1,274	1,077
Pension costs - (defined contribution schemes)	1,620	1,589	1,386	1,338
Defined benefit pension costs excluding interest	1,627	2,604	1,610	2,590
Total	20,764	22,241	15,590	16,155

The Methodist Church in Great Britain

38 employees were paid £60k or more during the year (2024: 28 employees). The total aggregate pension contributions for these employees for the year were £351k (2024: £258k).

The Connexional Funds

31 employees were paid £60k or more during the year (2024: 21 employees). The total aggregate pension contributions for these employees for the year were £320k (2024: £209k).

employees for the year were £320k (2024: £209k).
	The Methodist Church in		The	Connexional
		Great Britain		Funds
	2025	2024	2025	2024
	Number of	Number of	Number of	Number of
Basic salary plus bonus	employees	employees	employees	employees
£60,001 - £70,000	17	11	14	8
£70,001 - £80,000	8	10	6	7
£80,001 - £90,000	7	4	5	3
£90,001 - £100,000	2	2	2	2
£100,001 - £110,000	2	-	2	-
£110,001 - £120,000	1	1	1	1
£120,000 - £130,000	1	-	1	-

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

12. Stipends and salary costs (continued)

12. Stipends and salary costs (continued)
	The Methodist Church in		The Connexional	Funds
		Great Britain
Actual average number of staff by activity	2025	2024	2025	2024
Connexional Council & Governance	55.7	55.2	55.7	55.2
Global Relations	34.2	53.4	12.2	29.5
Evangelism & Growth	16.8	16.9	16.8	16.9
Learning Network	32.1	34.3	32.1	34.3
Children & Youth	8.1	6.6	8.1	6.6
Ministry	63.9	64.9	30.8	27.3
Building Communities	21.7	18.3	21.7	18.3
Administration & Support	43.3	46.3	43.3	46.3
Property	9.4	5.0	9.4	5.0
Fundraising	80.0	96.7	12.0	16.7
Total	365.2	397.6	242.1	256.1

The average number of volunteers working for the Council during the year was 774 (2024: 1,050).

Volunteers play an important role in the Council. Their contribution is significant in terms of the time they commit to attending meetings, raising funds and delivering services to beneficiaries.

Key management personnel

The key management personnel of the Church comprise the Secretary and Assistant Secretary of the Conference, the Connexional Secretary, the Head of Mission, the Head of Ministries & Learning, the Director of Communications, the Executive Director of Finance and Resources and the Director of Human Resources. A number of these posts are undertaken by Trustees (as set out in Note 26) and the remuneration of these individuals is included in the amounts below. Their total remuneration inclusive of benefits and employer's national insurance, but excluding pension contributions was £734k (2024: £682k). In addition, pension contributions of £104k were paid into defined contribution pension schemes on behalf of these personnel (2024: £101k).

Pension costs

The Connexional Council operates three main pension schemes:

the Methodist Ministers' Pension Scheme (MMPS);
the Pensions and Assurance Scheme for Lay Employees of the Methodist Church (PASLEMC); and
the Superannuation Scheme for Lay Mission Partners of the Methodist Church (SSMP).
The MMPS and PASLEMC schemes are final salary defined benefit pension schemes and both schemes are funded by the payment of contributions to separately administered trust funds. The SSMP is an unfunded scheme.

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

12. Pension costs (continued)

The Methodist Ministers’ Pension Scheme

The MMPS is treated as a group scheme for accounting purposes as all of the entities participating in the scheme, mainly the circuits and the Council, are under the common control of the Conference. There is no contractual arrangement or stated policy for charging the net defined benefit cost of the plan as a whole to individual circuits and the Council. A detailed explanation of the accounting treatment is provided in Note 2 on pages 57-58 with further information as required by FRS102 included on pages 96-98.

The Methodist Church in Great Britain is the sole statutory employer for purposes of pension law, that is The Church as defined in the Methodist Church Act 1976 and the Deed of Union 1939 of which the Conference is the supreme governing body. There are approximately 1,010 ministers who are active members of MMPS of whom the Council (the ‘reporting entity’) is responsible for the pension contributions of 58 ministers. The majority of ‘employer’ pension contributions coming from the circuits to which they are stationed annually by the Conference, that also pay their stipends and employer national insurance contributions.

For the MMPS, costs equal to the contributions paid by the Council for ministers in posts under the control of the Council are recognised in these accounts as they fall due; likewise, pension contributions for ministers stationed at circuit level are paid by the individual circuit.

FRS 102 requires that if the net defined benefit pension cost is not reflected in the individual financial statements of the participating entities, it should be reflected in the individual financial statements of the group entity which is legally responsible for the plan. However, the Council is not legally responsible for the plan and so the liability has not been included in these financial statements. The agreement with the Trustees of MMPS for the making good of the technical deficit rests with the Conference and not the Council.

The Pension and Assurance Scheme for Lay Employees of the Methodist Church (PASLEMC)

The PASLEMC scheme is treated as a group scheme for accounting purposes, with the Connexional Council as the sponsoring employer with legal responsibility for the plan. There is no contractual arrangement or stated policy for charging the net defined benefit cost of the plan as a whole to individual group entities and therefore the Council has recognised the entire net defined benefit liability in its financial statements.

The PASLEMC scheme is a funded defined benefit arrangement which provides retirement benefits based on final pensionable earnings. The scheme closed to new entrants and the future accrual of pensionable service with effect from 31 May 2019. The most recent actuarial valuation of the Scheme, carried out as at 1 September 2023, revealed that the Scheme had a deficit on the funding basis. The Connexional Council, the other participating employers and the Trustee of the Scheme put in place a Schedule of Contributions and a Recovery Plan which detailed the contributions that would be made to fund both this deficit and the shortfall arising from the level of future service contributions being paid.

Following the resolution to commence winding up the scheme on 18 March 2025, the Trustee has put in place a new schedule of contributions confirming that from 1 September 2025 the Connexional Council is paying the scheme expenses. It is anticipated payment of pensions will transfer to Aviva in September 2026 with the final wind up of the scheme to be completed by the end of 2026. The estimated cost for the final buy-out of the scheme to be funded from the Pension Reserve Fund is anticipated to be within the budget set in 2023 by the former Methodist Council but it is difficult to estimate the actual cost.

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

The Superannuation Scheme for Lay Mission Partners (SSMP)

The Superannuation Scheme for Lay Mission Partners of the Methodist Church operated by the Methodist Church is a defined benefit arrangement which provides retirement benefits calculated as fixed pension amounts for each year of service. The Scheme closed to the future accrual of benefits in 2007, when all remaining active members became deferred pensioners. The most recent actuarial valuation of the Scheme, carried out as at 31 August 2024, indicated that the Scheme had a surplus.

There are 20 members in total, 6 of whom are deferred pensioners. The scheme has been accounted for as a defined benefit scheme in accordance with FRS 102. The Scheme is now closed to new entrants.

The scheme provides a pension of £229.98 per year of qualifying service to a single retired mission partner or widow / widower, £306.72 per year of qualifying service to a married mission partner. The rates are increased annually in line with the retail price index. There are also retirement grants of £152.83 (single) / £204.28 (married) per year of qualifying service for those mission partners who withdraw before completing 10 years qualifying service. Mission partners who retire after completing 10 but less than 15 years qualifying service are given the option of receiving a withdrawal grant or a retirement pension at the appropriate retirement age. Mission partners who withdraw or retire after completing 15 years qualifying service receive a retirement grant and a pension at the appropriate retirement age.

The calculations for the FRS 102 disclosures have been carried out by running actuarial calculations as at 31 August 2025 by the Scheme’s actuary and shown in Note 28.

Other pension schemes

The Connexional Council also participates in a number of smaller pension schemes. The members are mission partners currently working overseas. The schemes are: The Pensions Trust and The Retirement Benefit Scheme (Ireland).

The Pensions Trust

The Pension Trust was stopped in August 2024. The pension charge for the year was £0k (2024: £132k). Further disclosures are deemed unnecessary on the grounds of immateriality.

The Retirement Benefit Scheme (Ireland)

There are currently 2 members in this scheme. The pension charge for the year was £11k (2024: £5.3k). Further disclosures are deemed unnecessary on the grounds of immateriality.

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

13a. Tangible fixed assets - The Methodist Church in Great Britain

	Freehold land	Furniture and	Computer	Motor
	and buildings	fittings	equipment	vehicles	Total
Atcost or valuation	£000	£000	£000	£000	£000
At 1 September 2024	75,389	2,011	2,222	46	79,668
Additions during the year	3,667	61	54	-	3,782
Revaluations	(5,654)	-	-	-	(5,654)
Transfers	(880)	-	-	-	(880)
Disposals	(522)	-	-	-	(522)
Total	72,000	2,072	2,276	46	76,394
Depreciation
At 1 September 2024	561	1,925	1,990	34	4,510
Charge for the year	154	37	147	5	343
Disposals	-	-	-	-	-
Total	715	1,962	2,137	39	4,853
Net book value as at 31 August 2025 Net book value as at 31 August 2024 13b. Tangible fixed assets - The Connexional Funds At cost or valuation	71,285 74,828 Freehold land and buildings £000	110 86 Furniture and fittings £000	139 232 Computer equipment £000	7 12 Motor vehicles £000	71,541 75,158 Total £000
At 1 September 2024 Additions during the year Revaluations Transfers Disposals	64,372 3,449 (5,538) (880) (475)	921 47 - - -	1,605 42 - - -	- - - - -	66,898 3,538 (5,538) (880) (475)
Total Depreciation At 1 September 2024 Charge for the year Disposals	60,928 - - -	968 898 15 -	1,647 1,406 123 -	- - - -	63,543 2,304 138 -
Total Net book value as at 31 August 2025 Net book value as at 31 August 2024	- 60,928 64,372	913 55 23	1,529 118 199	- - -	2,442 61,101 64,594

Depreciation cost is included in the support cost and apportion in other activities (Note 8)

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued) 13b. continued

Revaluation in the year are included in these lines in the SOFA

----- Start of picture text -----
£'000
Accounting adjustment on revaluation of tangible fixed assets (5,591)
Allocated in Charitable activities 52
Gains on revaluation of Charitable properties 1
Total Connexional Funds (5,538)
Gains on revaluation of charitable properties (116)
Total The Methodist Church in Great Britain (5,654)
----- End of picture text -----

13c. Intangible fixed assets

----- Start of picture text -----
|||| |---|---|---| |The|The| |Methodist|Connexional| |Church in|Funds| |Software|Great Britain| |At cost|£000|£000| |At 1 September 2024|628 451| |Additions during the year|350 350| |Total|978|801| |Amortisation| |At 1 September 2024|474 370| |Charge for the year|86 29| |Total|560|399| |Net book value as at 31 August 2025|418|402| |Net book value as at 31 August 2024|153|81|

----- End of picture text -----

Amortisation cost is included in the support cost and apportion in other activities (Note 8)

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

13d. Revaluation of charitable land and buildings

Land & buildings have been revalued as set out below on an existing use open market value basis, in accordance with the Guidance Notes of the Royal Institution of Chartered Surveyors. The individual valuers are not connected with the Methodist Church. Valuations are based on fair value of the land and buildings subject to and with the benefit of existing leases where appropriate.

The freehold land and buildings were revalued on 31 August 2024 except for Asbury Overseas House, Birmingham (Birmingham Methodist Overseas Guest House). A full professional valuation was subsequently carried out by Savills for Asbury Overseas House, in October 2020. The property was valued at £1.85m.

Methodist Church House, 25 Tavistock Place, London, WC1H 9SF - valuation carried out in February 2025 by David Wood MRICS and Christian Hayes MRICS from Savills (UK) Ltd, 33 Margaret Street, London, W1G 0JD; valued at £20m.

The manses, which are residential and have a well established market, were revalued by independent Valuer, Paul G. Beardmore BSc MRICS from Butters John Bee, Albion House, Stoke-on-Trent ST1 5RQ on 31 August 2025. The trustees consider the valuation of these properties and consider that there is no material difference between amounts in the accounts and the current individual valuations.

The commercial properties were valued by professional independent valuers as follows:

1-5 Lambeth Road SE1- valuation by Tony Harris LLM FRICS FCIArb of Cluttons, Portman Street, London W1H 6DU, in July 2022 for £10k.

Cliff College, Calver, Hope Valley, Derbyshire S32 3XG - Valuation carried out in August 2021 by M J Hull BSc (Hons) MRICS from SMC Chartered Surveyors, 54 Campo Lane, Sheffield S1 2EG; valued at £6.07m.

Current value of Guy Chester Centre in the accounts is based on the valuation carried out by Savills. The valuation was done in September 2022. The property was valued at £14.87m.

The place of worship part of the Wesley Hotel Camden located at 89 Plender Street, Camden Town, London NW1 0JN was revalued by Savills on 31 August 2023. The current market value is £1.13m.

All the properties were valued at fair value in accordance with FRS 102.

The carrying value that would have been recognised had the assets been carried under the historical cost model is £45.3m (2024: £44m) for the Methodist Church in Great Britain and £37.1m (2024: £36m) for Connexional Funds.

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

14a. Investments - The Methodist Church in Great Britain

----- Start of picture text -----
Investment Central William Leech Other 2025 2024
properties Finance Charities Fund Investments
Board Units
£000 £000 £000 £000 £000 £000
Fair value at 1 September 40,137 124,196 10,402 995 175,730 186,469
Additions - 774 291 - 1,065 872
Transfers (from Charitable property) 880 - - - 880 -
Disposals - (3,581) - - (3,581) (25,829)
Investment (losses)/gains 3,107 1,575 27 - 4,709 14,218
Fair value as at 31 August 44,124 122,964 10,720 995 178,803 175,730
----- End of picture text -----

14b. Investments - The Connexional Funds

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |Investment|Central|William Leech|Other|2025|2024| |properties|Finance|Charities Fund|Investments| |Board Units| |£000|£000|£000|£000|£000|£000| |Fair value at 1 September|40,214|122,796|10,402|900|174,312|173,482| |Additions|- -|291|- 291|303| |Transfers|880|- - - 880|-| |Disposals|-|(2,798)|- -|(2,798)|(13,400)| |Investment (losses)/gains|3,108|1,529|27|-|4,664|13,926| |Fair value as at 31 August|44,202|121,527|10,720|900|177,349|174,311|

----- End of picture text -----

Investment additions and disposals

During the year, the Resourcing Committee reviewed the investment portfolio in line with the current investment policy.

William Leech Charities Fund

The Methodist Church holds investments valued at £10.7m (2024: £10.4m) in William Leech (Investments) Ltd which represents 20% of the company's net assets as at 31 August 2025. The holding is based on the company's audited accounts to 31 March 2025, updated with management accounts to 31 August 2025. The Methodist Church has a representative on the board of the company but cannot exert significant influence over it.

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

	The Methodist Church in	The Methodist Church in	The Connexional Funds	The Connexional Funds
		Great Britain
14c. Analysis of movement of investment properties	2025	2024	2025	2024
	£000	£000	£000	£000
Fair value at 1 September	40,137	50,814	40,214	40,190
Additions	-	24	-	24
Transfers	880	-	880	-
Revaluation gain/(loss)	3,107	-	3,108	-
Disposals	-	(10,701)	-	-
Fair value at 31 August	44,124	40,137	44,202	40,214

Included within investment properties are the following revalued properties:

i) London Mission Fund

The London Mission property portfolio was valued by G Parks MRICS for and on behalf of Cluttons LLP.

Major review was done on the London Mission property portfolio and the findings have been reflected in the accounts.

Sutherland Avenue and Archway Shops properties have been written off; and Hove street properties values has reduced significantly.

a) Hove Residential at 20 Bigwood Avenue: £10k (2024: £0.29m)

b) Hostel at 229 King Street Hammersmith, London W6 9JT: £1.44m (2024: £0.58m)

c) Maida Vale Library, Sutherland Avenue, London W9 2QT: £nil (2024: £0.4m)

d) Central Hall Buildings, Archway, London N19 3UB: £nil (2024: £1.87m)

ii) Guy Chester Centre

A property known as the Hazlehyrst, 7 Colney Hatch Lane, London N10 1PN was valued on 24 July, 2023 by James Gilmartin MRICS from Gilmartin Ley Ltd. The fair value is £3.79m.

iii) The Wesley Hotel, Camden

The property is located at 89 Plender Street, Camden Town, London NW1 0JN. It was valued on 31 August 2023 by Savills and the current market value for the hotel is £10.87m.

iv) The Wesley Hotel, Euston Street

The property is located at 81-103 Euston Street, London, NW1 2EZ. It was valued in August 2025 by Savills and the current market value is £24.6m.

v) 4 John Wesley Road

The property is located at 4 John Wesley Road, Werrington, Peterborough, PE4 6ZL. It was valued in August 2025 by Eddisons, Incorporating Barker Storey Matthews. The current market value is £2.35m.

vi) 90 Hayes Lane, Kenley

The property is located at 90 Hayes Lane, Kenley, Greater London, CR8 5JP. It was valued in September 2024 by

Adrian Judge BSc (Hons) MRICS from Judge Surveyors, 9 High Street, Milton Keynes, MK17 8RF; valued at £0.92m.

vii) International House, London

The property is located at Interna�onal House, 1 Lambeth Road, London SE1 7DQ. It was valued in September 2025 by Bruton Knowles. The current market value is £92k.

The Church's policy is normally to revalue the investment properties every three years. For the period under review the trustees do not consider there to have been a change in the fair value of the remaining properties.

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

	The Methodist Church in	The Methodist Church in	The Connexional	Funds
		Great Britain
15. Debtors	2025	2024	2025	2024
	£000	£000	£000	£000
Prepayments and accrued interest	2,441	2,383	1,836	2,007
Loans to other entities	150	-	658	718
Concessionary loans due within one year	182	187	182	187
Concessionary loans due after more than one year	305	331	305	331
Other debtors	2,337	2,515	1,757	3,241
Total	5,414	5,416	4,738	6,484

Methodist International Centre - The Methodist Church in Great Britain and The Connexional Funds

In May 2020, the Methodist Council made a loan of £786k to MIC Ltd to support it through the Covid-19 lockdown. The Connexional Council have extended the period of the loan. At 31 August 2025, the balance on the loan is £518k (2024: £718k).

	The Methodist	Church in	The Connexional Funds	The Connexional Funds
	Great Britain
16a. Creditors: amounts due within one year	2025	2024	2025	2024
	£000	£000	£000	£000
Accruals	1,994	4,996	585	3,845
Loans	28	284	-	-
Tax and social security	689	660	377	316
Grant commitments	7,092	9,816	6,893	9,684
Other creditors	6,937	3,557	6,909	5,000
Total	16,740	19,313	14,764	18,845

Total	16,740	19,313	14,764	18,845
		-		-
16b. Creditors: amounts due after more than one year	2025	2024	2025	2024
	£000	£000	£000	£000
Loans	56	84	-	-
Grant commitments	2,378	675	2,346	606
Total	2,434	759	2,346	606

Loans

Cliff College - The Methodist Church in Great Britain

At 31 August 2025, the balance on the loan is £28k due within one year and £56k due after more than one year (2024: £284k and £84k respectively) which was secured by a legal charge over the property known as 26 Ashenhurst Way, Leek, Staffordshire. ST13 5SB, with a carrying value of £407k. The loan is repayable in 20 equal capital instalments on the 30 June and 31 December each year plus interest accrued in the 6 month period at the rate of 2.94% (APR) variable.

Methodist International Centre - The Methodist Church in Great Britain and The Connexional Funds

MIC Ltd obtained a Coronavirus Business Interruption Loan (CBIL) of £500k, this amount is interest-free in the first 12 months, and the loan term is six years from the date of drawdown - 14 July 2021. The loan balance has been fully repaid as at 31 August 2024. (2023: £229k).

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

----- Start of picture text -----
The Methodist Church The Connexional Funds
in Great Britain
17. Stocks
2025 2024 2025 2024
£000 £000 £000 £000
Finished goods and goods for resale 27 35 16 21
Total 27 35 16 21
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----- Start of picture text -----
|||||| |---|---|---|---|---| |The difference between purchase price or production cost of stocks and their replacement cost is not material.| |Stock recognised as an expense in the year were 5k (2024; £10k).| |The Methodist Church|The Connexional Funds| |in Great Britain| |18. Financial instruments| |2025|2024|2025|2024| |£000|£000|£000|£000| |Financial assets at fair value through profit or loss| |Listed investments|122,964|124,196|121,527|122,795| |William Leech Charities Fund and other investments|11,715|11,397|11,620|11,302| |Total|134,679|135,593|133,147|134,097| |Financial assets that are debt instruments measured at amortised cost| |Debtors|2,336|2,515|1,757|3,241| |Total|2,336|2,515|1,757|3,241| |Financial liabilities measured at amortised cost| |Loans|84|368|- -| |Accruals|1,994|4,996|585|3,845| |Other creditors|6,937|3,557|6,909|5,000| |Total|9,015|8,921|7,494|8,845| |Concessionary loans (at cost plus accrued interest less impairment)| |Loans to ministers|182|187|182|187| |Loan to Lesnes Abbey Circuit|150|-|658|718| |Total|332|187|840|905|

----- End of picture text -----

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

The Methodist Church in Great Britain
	Balance at	Income	Expenditure	Actuarial	Investment	Transfers	Balance as
	1 September			losses on DB	gains/(losses)		at 31
	2024			pension	& revaluation		August
				scheme	reserve		2025
19a. Unrestricted funds					movements
	£000	£000	£000	£000	£000	£000	£000
General	58,368	25,305	(26,433)	-	4,659	2,940	64,839
Designated 19c	73,180	15,786	(10,826)	-	1,148	(1,883)	77,405
Defined Benefit Pension Scheme	(935)	-	(327)	1,078	-	-	(184)
Total The Connexional Funds 19b. Unrestricted funds	130,613 Balance at 1 September 2024 £000	41,091 Income £000	(37,586) Expenditure £000	1,078 Actuarial losses on DB pension scheme £000	5,807 Investment gains/(losses) & revaluation reserve movements £000	1,057 Transfers £000	142,060 Balance as at 31 August 2025 £000
General 54,944 19,645 (20,984) - 4,659 2,940 61,204 Designated 19d 71,291 15,976 (11,822) - 1,148 (1,883) 74,710 Defined Benefit Pension Scheme (935) - (327) 1,078 - - (184) Total 125,300 35,621 (33,133) 1,078 5,807 1,057 135,730 The Methodist Church in Great Britain 19c. Designated funds Balance at 1 September 2024 Income Expenditure Actuarial losses on DB pension scheme Investment gains/(losses) & revaluation reserve movements Transfers Balance as at 31 August 2025 £000 £000 £000 £000 £000 £000 £000 Intercompany transfers occur as MCF pays on behalf of most other funds. Transfers in of £2.7m to the general fund principally comprise the net balance of the management levy received (£0.8m), PRF refund to churches (£1.4m) and other MIC contributions (£0.6m) Note 22 page 85.
1) The Connexional Priority Fund 2) The Epworth Fund 3) The Designated Training Fund 4) The Pension Reserve Fund Total The Connexional Funds 19d. Designated funds	19,279 6,101 2,111 45,689 73,180 Balance at 1 September 2024 £000	13,104 167 - 2,515 15,786 Income £000	(8,500) (222) (632) (1,472) (10,826) Expenditure £000	- - - - - Actuarial losses on DB pension scheme £000	188 70 - 890 1,148 Investment gains/(losses) & revaluation reserve movements £000	7,333 (22) 1,193 (10,387) (1,883) Transfers £000	31,404 6,094 2,672 37,235 77,405 Balance as at 31 August 2025 £000
1) The Connexional Priority Fund 2) The Epworth Fund 3) The Designated Training Fund 4) The Pension Reserve Fund Total	19,119 6,091 392 45,689 71,291	13,104 167 190 2,515 15,976	(9,040) (241) (1,069) (1,472) (11,822)	- - - - -	188 70 - 890 1,148	7,333 (22) 1,193 (10,387) (1,883)	30,704 6,065 706 37,235 74,710
	agrees	agrees	agrees	agrees	agrees	agrees	agrees
The transfers to the designated training	fund is the contibution from the income generating centres				(Guy Chester & MIC) towards		the
Learning Network. Transfers into the Connexional Priority Fund principally relate to the net of £0.67m management levy paid to the general
fund and net transfers receipt of £7.4m	to the Pension Reserve Fund		(PRF). See Note 22 page 85.

The Methodist Church in Great Britain
	Balance at	Income	Expenditure	Actuarial	Investment	Transfers	Balance as
	1 September			losses on DB	gains/(losses)		at 31
	2024			pension	& revaluation		August
				scheme	reserve		2025
19a. Unrestricted funds					movements
	£000	£000	£000	£000	£000	£000	£000
General	58,368	25,305	(26,433)	-	4,659	2,940	64,839
Designated 19c	73,180	15,786	(10,826)	-	1,148	(1,883)	77,405
Defined Benefit Pension Scheme	(935)	-	(327)	1,078	-	-	(184)
Total The Connexional Funds 19b. Unrestricted funds	130,613 Balance at 1 September 2024 £000	41,091 Income £000	(37,586) Expenditure £000	1,078 Actuarial losses on DB pension scheme £000	5,807 Investment gains/(losses) & revaluation reserve movements £000	1,057 Transfers £000	142,060 Balance as at 31 August 2025 £000
General 54,944 19,645 (20,984) - 4,659 2,940 61,204 Designated 19d 71,291 15,976 (11,822) - 1,148 (1,883) 74,710 Defined Benefit Pension Scheme (935) - (327) 1,078 - - (184) Total 125,300 35,621 (33,133) 1,078 5,807 1,057 135,730 The Methodist Church in Great Britain 19c. Designated funds Balance at 1 September 2024 Income Expenditure Actuarial losses on DB pension scheme Investment gains/(losses) & revaluation reserve movements Transfers Balance as at 31 August 2025 £000 £000 £000 £000 £000 £000 £000 Intercompany transfers occur as MCF pays on behalf of most other funds. Transfers in of £2.7m to the general fund principally comprise the net balance of the management levy received (£0.8m), PRF refund to churches (£1.4m) and other MIC contributions (£0.6m) Note 22 page 85.
1) The Connexional Priority Fund 2) The Epworth Fund 3) The Designated Training Fund 4) The Pension Reserve Fund Total The Connexional Funds 19d. Designated funds	19,279 6,101 2,111 45,689 73,180 Balance at 1 September 2024 £000	13,104 167 - 2,515 15,786 Income £000	(8,500) (222) (632) (1,472) (10,826) Expenditure £000	- - - - - Actuarial losses on DB pension scheme £000	188 70 - 890 1,148 Investment gains/(losses) & revaluation reserve movements £000	7,333 (22) 1,193 (10,387) (1,883) Transfers £000	31,404 6,094 2,672 37,235 77,405 Balance as at 31 August 2025 £000
1) The Connexional Priority Fund 2) The Epworth Fund 3) The Designated Training Fund 4) The Pension Reserve Fund Total	19,119 6,091 392 45,689 71,291	13,104 167 190 2,515 15,976	(9,040) (241) (1,069) (1,472) (11,822)	- - - - -	188 70 - 890 1,148	7,333 (22) 1,193 (10,387) (1,883)	30,704 6,065 706 37,235 74,710
	agrees	agrees	agrees	agrees	agrees	agrees	agrees
The transfers to the designated training	fund is the contibution from the income generating centres				(Guy Chester & MIC) towards		the
Learning Network. Transfers into the Connexional Priority Fund principally relate to the net of £0.67m management levy paid to the general
fund and net transfers receipt of £7.4m	to the Pension Reserve Fund		(PRF). See Note 22 page 85.

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

The Methodist Church in Great Britain
	Balance at	Income	Expenditure	Actuarial	Investment	Transfers	Balance as
	1 September			losses on DB	gains/(losses)		at 31
	2023			pension	& revaluation		August
				scheme	reserve		2024
19e. Unrestricted funds					movements
	£000	£000	£000	£000	£000	£000	£000
General	55,585	24,400	(25,137)	-	406	3,114	58,368
Designated 19c	71,857	23,115	(25,068)	-	7,651	(4,375)	73,180
Defined Benefit Pension Scheme	-	-	215	(1,150)	-	-	(935)
Total The Connexional Funds 19f. Unrestricted funds	127,442 Balance at 1 September 2023 £000	47,515 Income £000	(49,990) Expenditure £000	(1,150) Actuarial losses on DB pension scheme £000	8,057 Investment gains/(losses) & revaluation reserve movements £000	(1,261) Transfers £000	130,613 Balance as at 31 August 2024 £000
General 51,866 18,755 (19,197) - 406 3,114 54,944 Designated 19d 70,423 23,114 (25,522) - 7,651 (4,375) 71,291 Defined Benefit Pension Scheme - - 215 (1,150) - - (935) Total 122,289 41,869 (44,504) (1,150) 8,057 (1,261) 125,300 The Methodist Church in Great Britain 19g. Designated funds Balance at 1 September 2023 Income Expenditure Actuarial losses on DB pension scheme Investment gains/(losses) & revaluation reserve movements Transfers Balance as at 31 August 2024 £000 £000 £000 £000 £000 £000 £000 Intercompany transfers occur as MCF pay on behalf of most other funds. Transfers in of £2.3m to the general fund principally comprise the net balance of the management levy received (£1.8m) and other MIC contributions (£0.6m) Note 22 page 85.
1) The Connexional Priority Fund 2) The Epworth Fund 3) The Designated Training Fund 4) The Pension Reserve Fund Total The Connexional Funds 19h. Designated funds	12,792 6,180 1,405 51,481 71,858 Balance at 1 September 2023 £000	21,023 217 1 1,874 23,115 Income £000	(13,483) (898) (694) (9,993) (25,068) Expenditure £000	- - - - - Actuarial losses on DB pension scheme £000	1,487 630 - 5,534 7,651 Investment gains/(losses) & revaluation reserve movements £000	(2,540) (28) 1,400 (3,207) (4,375) Transfers £000	19,279 6,101 2,112 45,689 73,181 Balance as at 31 August 2024 £000
1) The Connexional Priority Fund 2) The Epworth Fund 3) The Designated Training Fund 4) The Pension Reserve Fund Total	12,730 6,170 42 51,481 70,423	21,023 217 - 1,874 23,114	(13,581) (898) (1,050) (9,993) (25,522)	- - - - -	1,487 630 - 5,534 7,651	(2,540) (28) 1,400 (3,207) (4,375)	19,119 6,091 392 45,689 71,291
The transfers to the designated training fund is the contibution from the income generating centres (Guy Chester & MIC) towards							the
Learning Network. Transfers out of the Connexional Priority Fund principally relate to £0.96m management levy paid to the general fund and
£5.6m to the Pension Reserve Fund (PRF). See Note 22 page 85.

The Methodist Church in Great Britain
	Balance at	Income	Expenditure	Actuarial	Investment	Transfers	Balance as
	1 September			losses on DB	gains/(losses)		at 31
	2023			pension	& revaluation		August
				scheme	reserve		2024
19e. Unrestricted funds					movements
	£000	£000	£000	£000	£000	£000	£000
General	55,585	24,400	(25,137)	-	406	3,114	58,368
Designated 19c	71,857	23,115	(25,068)	-	7,651	(4,375)	73,180
Defined Benefit Pension Scheme	-	-	215	(1,150)	-	-	(935)
Total The Connexional Funds 19f. Unrestricted funds	127,442 Balance at 1 September 2023 £000	47,515 Income £000	(49,990) Expenditure £000	(1,150) Actuarial losses on DB pension scheme £000	8,057 Investment gains/(losses) & revaluation reserve movements £000	(1,261) Transfers £000	130,613 Balance as at 31 August 2024 £000
General 51,866 18,755 (19,197) - 406 3,114 54,944 Designated 19d 70,423 23,114 (25,522) - 7,651 (4,375) 71,291 Defined Benefit Pension Scheme - - 215 (1,150) - - (935) Total 122,289 41,869 (44,504) (1,150) 8,057 (1,261) 125,300 The Methodist Church in Great Britain 19g. Designated funds Balance at 1 September 2023 Income Expenditure Actuarial losses on DB pension scheme Investment gains/(losses) & revaluation reserve movements Transfers Balance as at 31 August 2024 £000 £000 £000 £000 £000 £000 £000 Intercompany transfers occur as MCF pay on behalf of most other funds. Transfers in of £2.3m to the general fund principally comprise the net balance of the management levy received (£1.8m) and other MIC contributions (£0.6m) Note 22 page 85.
1) The Connexional Priority Fund 2) The Epworth Fund 3) The Designated Training Fund 4) The Pension Reserve Fund Total The Connexional Funds 19h. Designated funds	12,792 6,180 1,405 51,481 71,858 Balance at 1 September 2023 £000	21,023 217 1 1,874 23,115 Income £000	(13,483) (898) (694) (9,993) (25,068) Expenditure £000	- - - - - Actuarial losses on DB pension scheme £000	1,487 630 - 5,534 7,651 Investment gains/(losses) & revaluation reserve movements £000	(2,540) (28) 1,400 (3,207) (4,375) Transfers £000	19,279 6,101 2,112 45,689 73,181 Balance as at 31 August 2024 £000
1) The Connexional Priority Fund 2) The Epworth Fund 3) The Designated Training Fund 4) The Pension Reserve Fund Total	12,730 6,170 42 51,481 70,423	21,023 217 - 1,874 23,114	(13,581) (898) (1,050) (9,993) (25,522)	- - - - -	1,487 630 - 5,534 7,651	(2,540) (28) 1,400 (3,207) (4,375)	19,119 6,091 392 45,689 71,291
The transfers to the designated training fund is the contibution from the income generating centres (Guy Chester & MIC) towards							the
Learning Network. Transfers out of the Connexional Priority Fund principally relate to £0.96m management levy paid to the general fund and
£5.6m to the Pension Reserve Fund (PRF). See Note 22 page 85.

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

1) The Connexional Priority Fund (CPF)

The main source of income into this fund is primarily the levies charged on all capital proceeds from the disposal of Methodist land and buildings held for local, circuit or district purposes and any income arising therefrom is available for the purpose of (a) making grants to circuits and distribution to districts; (b) making an allocation by way of transfer between funds, to the Pension Reserve Fund in respect of the liabilities of the Methodist Ministers' Pension Scheme and the Pension and Assurance Scheme for Lay Employees of the Methodist Church and (c) funding the work of the Learning Network.

2) The Epworth Fund

This fund was set up following the sale of Epworth House, City Road, London in 1987 as a designated fund. The income from the fund is used to support innovative initiatives within The Methodist Church.

3) The Designated Training Fund

The main source of funding for the Designated Training Fund comes from the Methodist International and Guy Chester Centres respectively for the purpose of furthering the work of the Learning Network.

4) The Pension Reserve Fund

This fund was set up following a 2009 Conference decision to establish a Pension Reserve Fund outside of the Pension and Assurance Scheme for Lay Employees of the Methodist Church and Methodist Ministers' Pension Schemes which would be available if required to be used to meet future funding deficits.

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

The Methodist Church in Great Britain
	Balance at 31	Income	Expenditure	Actuarial	Investment	Transfers	Balance at 31
	August 2024			losses on DB	gains and		August 2025
				pension	revaluation
				scheme	reserve
20a. Restricted funds					movements
	£000	£000	£000	£000	£000	£000	£000
1) The Fund for the Support of Presbyters and
Deacons	7,939	216	(1,279)	-	13	(28)	6,861
2) Mission in Britain Fund	6,903	519	(3,627)	-	38	(189)	3,644
3) Centenary Hall Trust	27,867	221	(5,596)	-	-	-	22,492
4) The Fund for Training	2,818	331	(300)	-	(16)	(391)	2,442
5) The World Mission Fund	9,273	2,102	(1,602)	-	90	(706)	9,157
6) The London Mission Fund	16,651	658	(651)	-	(1,525)	-	15,133
7) The Guy Chester Centre	21,361	1,660	(1,176)	-	52	(375)	21,522
8) Cliff College	4,599	1,625	(2,775)	-	(116)	-	3,333
9) Southlands Methodist Trust	11,788	521	(725)	-	44	-	11,628
10) Methodist Medical Benevolent Fund	2,414	56	(164)	-	35	(2)	2,339
11)Special Extension Fund	2,518	60	(7)	-	39	(3)	2,607
Total funds with balances > £2m	114,131	7,969	(17,902)	-	(1,346)	(1,694)	101,158
Other - 28 funds with balances < £2m	8,614	3,223	(4,135)	(43)	74	333	8,066
Total The Connexional Funds 20b. Restricted funds	122,745 Balance at 31 August 2024 £000	11,192 Income £000	(22,037) Expenditure £000	(43) Actuarial losses on DB pension scheme £000	(1,272) Investment gains and revaluation reserve movements £000	(1,361) Transfers £000	109,224 Balance at 31 August 2025 £000
1) The Fund for the Support of Presbyters and Deacons 2) Mission in Britain Fund 3) Centenary Hall Trust 4) The Fund for Training 5) The World Mission Fund 6) The London Mission Fund 7) The Guy Chester Centre 8) Methodist Medical Benevolent Fund 9)Special Extension Fund	7,939 6,885 28,156 2,773 7,420 16,651 21,365 2,414 2,518	216 519 221 331 2,102 658 1,660 56 60	(1,279) (3,627) (5,596) (300) (1,754) (651) (1,176) (164) (7)	- - - - - - - - -	13 38 - (16) 90 (1,525) 52 35 39	(28) (189) - (391) (706) - (375) (2) (3)	6,861 3,626 22,781 2,397 7,152 15,133 21,526 2,339 2,607
Total funds with balances > £2m Other - 27 funds with balances < £2m Total	96,121 7,239 103,360	5,823 592 6,415	(14,554) (789) (15,343)	- (43) (43)	(1,274) 75 (1,199)	(1,694) 333 (1,361)	84,422 7,407 91,829
Transfers out of the World Mission Fund principally relate to £0.41m management levy paid to the general fund and £0.3m						to William Leech for
investment purposes. Guy Chester transfers out	£0.375m towards	the Learning Network.

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

The Methodist Church in Great Britain
	Balance at 31	Income	Expenditure	Actuarial	Investment	Transfers	Balance at 31
	August 2023			losses on DB	gains and		August 2024
				pension	revaluation
				scheme	reserve
20C. Restricted funds					movements
	£000	£000	£000	£000	£000	£000	£000
1) The Fund for the Support of Presbyters and
Deacons	6,096	224	(1,257)	-	303	2,573	7,939
2) Mission in Britain Fund	6,855	748	(828)	-	178	(50)	6,903
3) Centenary Hall Trust	27,462	316	(27)	-	591	(475)	27,867
4) The Fund for Training	2,549	550	(240)	-	(39)	(2)	2,818
5) The World Mission Fund	12,530	2,061	(5,496)	-	846	(668)	9,273
6) The London Mission Fund	15,336	267	(532)	-	1,580	-	16,651
7) The Guy Chester Centre	20,888	1,626	(973)	-	170	(350)	21,361
8) Cliff College	5,855	1,414	(2,759)	-	89	-	4,599
9) Southlands Methodist Trust	11,982	436	(823)	-	193	-	11,788
10) Methodist Medical Benevolent Fund	2,274	65	(118)	-	193	-	2,414
11)Special Extension Fund	2,273	67	(5)	-	185	(2)	2,518
Total funds with balances > £2m	114,100	7,774	(13,058)	-	4,289	1,026	114,131
Other - 28 funds with balances < £2m	8,780	3,516	(4,153)	(86)	612	(55)	8,614
Sub-total The Connexional Funds 20d. Restricted funds	122,880 Balance at 31 August 2023 £000	11,290 Income £000	(17,211) Expenditure £000	(86) Actuarial losses on DB pension scheme £000	4,901 Investment gains and revaluation reserve movements £000	971 Transfers £000	122,745 Balance at 31 August 2024 £000
1) The Fund for the Support of Presbyters and Deacons 2) Mission in Britain Fund 3) Centenary Hall Trust 4) The Fund for Training 5) The World Mission Fund 6) The London Mission Fund 7) The Guy Chester Centre 8) Methodist Medical Benevolent Fund 9)Special Extension Fund	6,096 6,857 27,751 2,504 10,970 15,336 20,892 2,274 2,273	224 748 316 550 2,061 267 1,626 65 67	(1,257) (848) (27) (240) (5,789) (532) (973) (118) (5)	- - - - - - - - -	303 178 591 (39) 846 1,580 170 193 185	2,573 (50) (475) (2) (668) - (350) - (2)	7,939 6,885 28,156 2,773 7,420 16,651 21,365 2,414 2,518
Total funds with balances > £2m Other - 27 funds with balances < £2m Total	94,953 6,675 101,628	5,924 664 6,588	(9,789) (562) (10,351)	- (86) (86)	4,007 603 4,610	1,026 (55) 971	96,121 7,239 103,360
Transfers out of the World Mission Fund principally relate to £0.55m management levy paid to the general fund and £0.25m to William Leech for
investment purposes. Guy Chester transfers out	£0.35m towards	the Learning Network.

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued) Notes on the purposes of the main funds

1) Fund for the Support of Presbyters and Deacons

This fund exists to provide additional assistance to supernumeraries; individuals who have been permitted or directed to become supernumerary; ministers, deacons, probationers, widows or widowers and their dependent children who are in need; ministers and deacons who are in need as a result of illness or impairment, for the purpose of enabling them to continue in or resume active work. The Fund for the Support of Presbyters and Deacons also makes grants to the Methodist Ministers' Housing Society.

2) Mission in Britain Fund

This fund exists to further the Church's mission by making grants to local churches and circuits and to bear witness to the global character of Christian Mission by supporting work with and among ethnically diverse communities in Britain and Ireland which have their origin in other countries.

3) Centenary Hall Trust

This exists to hold on trust a Church House, formerly 25 Marylebone Road and now 25 Tavistock Place.

4) The Fund for Property

This fund exists to support various mission property development projects around the Connexion by making grants and loans for property purposes to trustees of Methodist Properties in the districts.

5) The Fund for Training

The fund has three main purposes: (a) to provide initial and further training for presbyters, deacons, lay employees and other lay persons; (b) the provision of maintenance grants for persons undergoing such training and their dependants; (c) the maintenance, management and staffing of the Learning Network, and the Methodist contribution to the cost of joint theological colleges.

6) The World Mission Fund

This fund has five main purposes: (a) to initiate, maintain and encourage Christian mission in other countries; (b) to encourage the establishment of churches overseas which will themselves undertake that mission within and beyond their own borders; (c) to engage in a continuing relationship of mutual help and enrichment with churches (including united churches) in the life of which Methodist missions have played a part; (d) to foster and take part in ecumenical relationships in the field of world mission, including the work of the World Council of Churches and the Churches' Commission on Mission; (e) in furtherance of these purposes, to engage in education, advocacy recruitment and fundraising.

7) The London Mission Fund

The London Mission Fund derives from historic funds used to support ministry and property schemes in London. Since the reconfiguration of the London Districts in 2006, the Fund no longer makes individual grants but rather allocates block grants to the qualifying districts which in turn dispense the fund for the support of ministry, mission and property projects as part of their own grant-making functions.

8) The Guy Chester Centre

The Guy Chester Centre manages the buildings and grounds of the North Bank Estate. The Centre works within the ethos and values of the Methodist Church as set out in Our Calling. The Centre provides funding for the Learning Network.

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

9) Cliff College

The College was founded in 1883 to provide training for mission and evangelism to people from diverse backgrounds. The college now offers degrees validated by the University of Manchester in the areas of theology and mission as well as providing a wide variety of short courses and training events. The College is used as training centre in the Learning Network.

10) Southlands Methodist Trust

As part of the work carried out through the Learning Network, the Trust exists: (a) to support in association with the College and University the development of Christian, and specifically Methodist, scholarship, research and innovation of local, national and global significance and to facilitate the public dissemination of such developments; (b) to enable the members of the Methodist Community and wider public in Britain and internationally to benefit from the academic and other expertise and experience within the College and University and the facilities available within them.

11) The Methodist Medical Benevolent Fund (MMBF)

The purpose of this fund is to provide financial assistance to ministers suffering from stress and exhaustion to enable them to pay for appropriate recuperative treatment to facilitate recovery. This fund also helps ministers to pay for initial medical consultation, if it is not immediately available through the NHS, to facilitate speedy diagnosis and periodic health screening.

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

----- Start of picture text -----
The Methodist Church in Great Britain and The Connexional Funds
Balance at 1 Income Expenditure Investment Transfers Balance at
September gains & 31 August
21a. Endowment funds 2024 losses 2025
£000 £000 £000 £000 £000 £000
Permanent
Rank Endowment Fund 7,309 - (2) - 6 7,313
Barratt Memorial 1,369 - (4) 27 - 1,392
Bories Bequest 31 - - 1 - 32
Sub-total 8,709 - (6) 28 6 8,737
Expendable
William Leech Charities Fund 10,402 - - 27 291 10,720
Other - 4 funds with balances <£1m 1,188 - (1) 4 6 1,197
Sub-total 11,590 - (1) 31 297 11,917
- agrees agrees agrees agrees -
Total 20,298 - (7) 59 304 20,654
#REF! #REF! #REF! #REF! #REF! #REF!
----- End of picture text -----

Transfers of £0.3m to William Leech are principally for investment costs.

The Methodist Church in Great Britain and The Connexional Funds

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |Balance at 1|Income|Expenditure|Investment|Transfers|Balance at| |September|gains &|31 August| |21b. Endowment funds|2023|losses|2024| |£000|£000|£000|£000|£000|£000| |Permanent| |Rank Endowment Fund|7,305|-|(1)|5|-|7,309| |Barratt Memorial|1,229|-|(3)|139|4|1,369| |Other - 2 funds with balances <£1m|26|- -|5|-|31| |Sub-total|8,560|-|(4)|149|4|8,709| |Expendable| |William Leech Charities Fund|9,545|- -|578|279|10,402| |Other - 4 funds with balances <£1m|1,161|-|(1)|21|7|1,188| |Sub-total|10,706|-|(1)|599|286|11,590| |-|agrees|agrees|agrees|agrees|-| |Total|19,266|-|(5)|748|290|20,298|

----- End of picture text -----

Transfers of £0.26m to William Leech are principally for investment costs.

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

The Methodist Church in Great Britain and The Connexional Funds

22. Fund Transfers			2025			2024
	Transfers in	Transfers out Net transfer		Transfers in	Transfers out Net transfer
	£000	£000	£000	£000	£000	£000
Unrestricted
Connexional Priority Fund (Note 19)	10,150	(2,817)	7,333	-	(2,540)	(2,540)
Pension Reserve Fund (Note 19)	4,462	(14,849)	(10,387)	1,291	(1,898)	(607)
Designated Training Fund (Note 19)	5,620	(2,232)	3,388	1,050	-	1,050
Epworth Fund (Note 19)	-	(22)	(22)	-	(28)	(28)
General Fund (Note 19)	11,383	(10,000)	1,383	6,998	(2,834)	4,164
Methodist International Centre (Note 19)	180	(818)	(638)	-	(1,050)	(1,050)
Total Restricted World Mission Fund (Note 20) Guy Chester Centre (Note 20) Fund for Training (Note 20) Mission in Britain (Note 20) Fund for Support of Presbyters & Deacons Fund for property (Note 20) Centenary Hall Trust (Note 20) Others Total Endowments William Leech Charities Fund (Note 21) Rank Endowment (Note 21) Others (Note 21) Total Grand Total	31,795 - - 145 - - - - 526 671 301 15 9 325 32,791	(30,738) (706) (375) (536) (189) (28) (34) - (164) (2,032) (10) (9) (2) (21) (32,791)	1,057 (706) (375) (391) (189) (28) (34) - 362 (1,361) 291 6 7 304 -	9,339 1 - - - - 9 - 3 13 289 7 13 309 9,661	(8,350) (669) - (2) (50) (27) (35) (475) (34) (1,292) (10) (7) (2) (19) (9,661)	989 (668) - (2) (50) (27) (26) (475) (31) (1,279) 279 - 11 290 -

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

The Methodist Church in Great Britain

----- Start of picture text -----
Unrestricted Restricted Endowment 2025
23a. Analysis of net assets between funds Funds Funds Funds Total
£000 £000 £000 £000
Intangible fixed assets 418 - - 418
Tangible fixed assets 20,066 51,475 - 71,541
Investments 118,769 47,197 12,837 178,803
Current assets 19,557 21,170 1,070 41,797
Creditors due within one year (14,258) (9,229) 6,747 (16,740)
Creditors due after more than one year (2,308) (126) - (2,434)
Defined benefit pension scheme liability (184) (1,263) - (1,447)
Total 142,060 109,224 20,654 271,938
The Connexional Funds
Unrestricted Restricted Endowment 2025
23b. Analysis of net assets between funds Funds Funds Funds Total
£000 £000 £000 £000
Intangible fixed assets 402 - - 402
Tangible fixed assets 19,404 41,697 - 61,101
Investments 118,769 45,743 12,837 177,349
Current assets 18,557 8,290 1,070 27,917
Creditors due within one year (18,910) (2,600) 6,747 (14,763)
Creditors due after more than one year (2,308) (38) - (2,346)
Defined benefit pension scheme liability (184) (1,263) - (1,447)
Total 135,730 91,829 20,654 248,213
----- End of picture text -----

----- Start of picture text -----
|||||| |---|---|---|---|---| |The Methodist Church in Great Britain| |Unrestricted|Restricted|Endowment|2024| |23c. Analysis of net assets between funds|Funds|Funds|Funds|Total| |£000|£000|£000|£000| |Intangible fixed assets|115|38|-|153| |Tangible fixed assets|19,215|55,943|-|75,158| |Investments|114,603|48,630|12,497|175,730| |Current assets|21,868|22,979|50|44,897| |Creditors due within one year|(24,003)|(3,061)|7,751|(19,313)| |Creditors due after more than one year|(250)|(509)|-|(759)| |Defined benefit pension scheme liability|(935)|(1,276)|-|(2,211)| |Total|130,613|122,744|20,298|273,655|

----- End of picture text -----

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

The Connexional Funds

----- Start of picture text -----
Unrestricted Restricted Endowment 2024
23d. Analysis of net assets between funds Funds Funds Funds Total
£000 £000 £000 £000
Intangible fixed assets 81 - - 81
Tangible fixed assets 18,656 45,938 - 64,594
Investments 114,603 47,211 12,497 174,311
Current assets 22,334 9,249 51 31,634
Creditors due within one year (29,189) 2,594 7,750 (18,845)
Creditors due after more than one year (250) (356) - (606)
Defined benefit pension scheme liability (935) (1,276) - (2,211)
Total 125,300 103,360 20,298 248,958
----- End of picture text -----

24. Revaluation reserves

The revaluation reserves balances included in the restricted and unrestricted reserves are analysed as follows:

The Methodist Church in Great Britain

----- Start of picture text -----
||||| |---|---|---|---| |1 September|Movement|31 August| |24a. Revaluation reserve|2024|2025| |£000|£000|£000| |Unrestricted|7,023|1|7,024| |Restricted|44,931|(116)|44,815| |Total|51,954|(115)|51,839| |The Connexional Funds| |31 August|31 August| |Movement| |24b. Revaluation reserve|2024|2025| |£000|£000|£000| |Unrestricted|7,020|1|7,021| |Restricted|39,335|-|39,335| |Total|46,355|1|46,356|

----- End of picture text -----

The Methodist Church in Great Britain

----- Start of picture text -----
||||| |---|---|---|---| |1 September|Movement|31 August| |24c. Revaluation reserve|2023|2024| |£000|£000|£000| |Unrestricted|7,314|(291)|7,023| |Restricted|45,152|(221)|44,931| |Total|52,466|(512)|51,954|

----- End of picture text -----

The Connexional Funds

----- Start of picture text -----
||||| |---|---|---|---| |1 September|Movement|31 August| |24d. Revaluation reserve|2023|2024| |£000|£000|£000| |Unrestricted|7,311|(291)|7,020| |Restricted|39,556|(221)|39,335| |Total|46,867|(512)|46,355|

----- End of picture text -----

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

		2025		2024
25. Expenses reimbursed to the trustees	Number of		Number of
	trustees	£000	trustees	£000
Travel and other expenses reimbursed	17	26	41	31
			Total Remuneration
	Pension	Contributions	including Pensions
26. Trustees' remuneration	Total	Total	Total	Total
	2025	2024	2025	2024
	£000	£000	£000	£000
Mr Doug Godfrey-Swanney	-	19	-	156
Mrs Joanne Anderton	-	14	-	111
The Revd Dr Jonathan R Hustler	6	8	51	50
The Revd Gillian M Newton	6	8	50	50
Deacon Karen McBride	-	8	-	48
The Revd Helen K Kirk	-	8	-	48
The Revd S Mark Slaney	-	8	-	48
The Revd Richard M Andrew	-	8	-	48
The Revd Helen D Cameron	4	8	34	48
The Revd Michaela A Youngson	-	8	-	47
The Revd Richard J Byass	6	-	44	-
The Revd Nicholas A Oborski	6	-	44	-
The Revd Dr Joanne Cox-Darling	6	-	44	-
The Revd Beverly Hollings	6	-	44	-
The Revd Dr Michael J A Long	6	-	44	-
The Revd Dr Sonia M Hicks	6	8	50	43
The Revd Dr Marcus Torchon	-	8	-	43
The Revd Marie-Anne Kent	-	8	-	43
The Revd Steven R M Cooper	-	8	-	41
The Revd Sarah J Parkin	6	-	41	-
The Revd David M Goodall	6	-	41	-
Deacon Kerry Scarlett	-	8	-	40
Mrs Carolyn J Godfrey	-	-	4	-
Total	64	137	491	864

Of the trustees listed above, 12 were in the Connexional team or District Chairs (2024: 15). Their aggregate total emoluments including pension contributions and national insurance for this work and not in their role as trustees amounted to £0.49m (2024: £1.07m). Until 31 August 2024 trustees' appointments were made under Standing Order 210. Since 1 Sept 2024 trustees' appointments are made under Standing Order 200.

27. Trustees, related parties and connected organisations

Outlined below is a list of those bodies considered to be the main related parties, which together with The Methodist Church in Great Britain report separately each year to the Methodist Conference, the ultimate controlling body. Details of the transactions occurring during the year and amounts owing by or to the related parties as at 31 August are stated for each one as appropriate.

	2025
	Income from related party	Payments to/(from) related party	Loans from related party	Amount owed by/(to) related party
	£000	£000	£000	£000
Trustees for Methodist Church Purposes (a)	-	170	-	-
Methodist Ministers' Housing Society (b)	-	-	-	-
Methodist Ministers' Pension Scheme (c)	72	-	-	-
Pension Assurance Scheme for the Lay Employees of the Methodist Church (PASLEMC)	18	-	-	-
The Queen's Foundation for Ecumenical & Theological Education (d)	120	1,241	-	-
Methodist International Centre ltd(e)	1192	35	0	554

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

a) The payment to Trustees for Methodist Church Purposes (TMCP) is for various administration charges, including legal services rendered during the year. The income is for payroll administration charges.
b) The payments relate to the contributions made toward rents of the ministers staying in MMHS properties.
c) The income received from the MMPS was for rent and accountancy services.
d) A payment of £0.88m (2024: £0.88m) was made to The Queen’s Foundation for Ecumenical Theological Education being tuition fees for the 2024-25 academic year. Rent of £120k was received from The Queen’s Foundation for the period Sep 24 to Aug 25.
e) Income receivable from Methodist International Centre Ltd for rent chargeable for the use of building owned by Connexional Funds: £990k (2024: 990k). The £43k relates to accommodation expenses
f) (2024: £43k). In May 2020, the Methodist Council made a loan of £786k to MIC Ltd to support it through the Covid-19 lockdown. Monthly instalments to repay the loan started in July 2024. Balance as on 31 August 2025 is £518k (2024:718k).

	2024
	Income	Payments	Loans from	Amount owed
	from related	to/(from)	related	by/(to)
	party	related	party	related party
		party
	£000	£000	£000	£000
Trustees for Methodist Church Purposes (a)	19	201	-	-
Methodist Ministers' Housing Society (b)	-	74	-	-
Methodist Ministers' Pension Scheme (c)	72	-	-	-
Pension Assurance Scheme for the Lay Employees of the Methodist Church (PASLEMC) 18		-	-	-
The Queen's Foundation for Ecumenical & Theological Education (d)	120	880	-	-
Methodist International Centre ltd(e)	990	43	-	718

In addition to this, as set out in Note 28, the PASLEMC has been treated as a group plan with the Connexional Council as the sponsoring employer with legal responsibility for the plan. Participation in a group pension plan is a related party transaction. In the absence of a contractual agreement or policy for charging the net defined benefit cost of the plan as a whole to individual group entities, the Council treats the contributions paid to the Scheme by other group employers as a credit in its Statement of Financial Activities.

There are also related party transactions included in the management of the Church's investment portfolio by the Central Finance Board (CFB). Further, numerous transactions and balances occur between the Connexional Council, the districts, circuits and churches. In theory the Connexional Council could have dealings with any part of the wider Methodist Church. The main activities being:

The annual assessment on local circuits (which are collected via the districts) to pay for the work of the Connexional Team and other Conference activities" (e.g. District chairs and committee expenses) amounts to £14.7m (2024: £14.2m)
The awarding and distribution of grants to other Methodist entities amounts to £12.3m in 2024 (2024: £12.3m)
Investment charges (TMCP & CFB) amounts to £396k in 2025 (2024: £381k)

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

28. Defined benefit pension scheme commitments

The PASLEMC Scheme closed to new entrants and the future accrual of pensionable service with effect from 31 May 2019. Members

who were active when the Scheme closed (“closure members”) are entitled to a retirement pension based on the better of: - Pensionable Service as at the closure date and Final Pensionable Earnings at date of retirement or earlier date of leaving service (with subsequent deferred revaluation until retirement); and

Pensionable Service and Pensionable Earnings as at the closure date with statutory deferred revaluation until retirement.

The FRS 102 calculations have been carried out by Debra Smith, Fellow of the Institute and Faculty of Actuaries, BWCI Consulting Ltd. The scheme assets are stated at the fair values at the respective balance sheet dates.

The assets and liabilities of the schemes for both The Methodist Church in Great Britain and The Connexional Funds at 31 August are:

	Unrestricted	Restricted	2025	2024
	PASLEMC	SSMP	Total	Total
	£000	£000	£000	£000
Fair value of scheme assets	47,458	-	47,458	54,196
Present value of scheme liabilities	(47,642)	(1,263)	(48,905)	(56,407)
Sub Total	(184)	(1,263)	(1,447)	(2,211)
Unrecognised assets	-	-	-	-
Net defined benefit liability	(184)	(1,263)	(1,447)	(2,211)

The amounts charged to the statement of financial activities for both The Methodist Church in Great Britain and The Connexional Funds in respect of the two schemes are:

	Unrestricted	Restricted	2025	2024
	PASLEMC	SSMP	Total	Total
	£000	£000	£000	£000
Service cost (before contributions from other group employers)	22	-	22	41
Interest cost on scheme liabilities	2,671	61	2,732	2,783
Interest income on plan assets	(2,628)	(79)	(2,707)	(3,035)
Net finance costs	43	(18)	25	(252)
Total	64	(18)	46	(211)

During this Scheme year, the Trustee resolved to commence the winding up of the Scheme on 18 March 2025 and all closure members became deferred pensioners from that date.

Salary linkage and death in service benefits in the Scheme ceased to apply from this date. This gave rise to a curtailment on the date the resolution was signed and we have calculated the value of this curtailment as at 18 March 2025, using assumptions adopted as at 31 August 2024. The winding up would only give rise to a settlement at the point when the insurance policies are transferred into the names of the individual members. This is currently scheduled to take place in the second half of 2026, although this timeframe could change. Therefore we have made no allowance for any settlements within this year’s disclosures.

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

28. Defined benefit pension scheme commitments (continued)

The amounts recognised as other gains/(losses) in The Methodist Church in Great Britain and Connexional Funds statement of financial activities:

----- Start of picture text -----
Unrestricted Restricted 2025 2024
PASLEMC SSMP Total Total
£000 £000 £000 £000
Actual return on scheme assets (3,867) (68) (3,935) (1,471)
Amounts included in net interest on the net defined liability (2,628) 68 (2,560) (2,800)
Other actuarial gains/losses 7,573 (43) 7,530 (1,121)
Movement in unrecognised assets - - - 4,156
Re-measurement gains and losses recognised in SoFA 1,078 (43) 1,035 (1,236)
----- End of picture text -----

The changes in present value of defined benefit pension obligations for both The Methodist Church in Great Britain and The Connexional Funds are analysed as follows:

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |Unrestricted|Restricted| |Liabilities|PASLEMC|SSMP|TOTAL| |2025|2024|2025|2024|2025|2024| |£000|£000|£000|£000|£000|£000| |At 1 September|55,131 53,226|1,276 1,231 56,407 54,457| |Service cost|21 40|- - 21 40| |Interest on obligation|2,671 2,719|61 64 2,732 2,783| |Contributions by members|- -|- - - -| |Curtailment costs / (gains)|(949)|-|- -|(949)| |Benefits paid|(2,608)|(1,889)|(117)|(105)|(2,725)|(1,994)| |Actuarial (gains)/losses|(6,624)|1,035|43|86|(6,581)|1,121| |At 31 August|47,642|55,131|1,263|1,276|48,905|56,407|

----- End of picture text -----

The changes in the fair value of the plan assets during the year for both The Methodist Church in Great Britain and the Connexional Funds are analysed as follows:

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |Unrestricted|Restricted| |Assets|PASLEMC|SSMP|TOTAL| |2025|2024|2025|2024|2025|2024| |£000|£000|£000|£000|£000|£000| |At 1 September|54,196 57,176|- - 54,196 57,176| |Interest on assets|2,628 2,951|- - 2,628 2,951| |Contributions by employers|450 1,050|- - 450|1,050| |Contributions by members|- - - - - -| |Administration expenses|(713)|(821)|- -|(713)|(821)| |Benefits paid|(2,608)|(1,889)|- -|(2,608)|(1,889)| |Actuarial return less interest income on| |plan assets|(6,495)|(4,271)|- -|(6,495)|(4,271)| |At 31 August|47,458|54,196|- -|47,458|54,196| |Unrecognised assets|- -|- - - -| |Net Defined Benefit Liability|184 935|1,263|1,276|1,447|2,211|

----- End of picture text -----

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

28. Defined benefit pension scheme commitments (continued)

Principal actuarial assumptions at the balance sheet date in respect of the two schemes were:

Principal actuarial assumptions at the balance sheet date in respect of the two	schemes were:	schemes were:
	PASLEMC		SSMP
	2025	2024	2025	2024
	%pa	%pa	%pa	%pa
Discount rate at end of year	6.1	5.0	5.9	5.0
Discount rate at start of year	5.0	5.2	5.0	5.4
RPI Inflation	3.2	3.3	3.2	3.4
CPI Inflation	2.6	2.7	-	-
Rate of increase in Pensionable earnings	N/A*	2.7	-	-
Rate of increase in deferred pensions pre 2009 LPI 5%	2.6	2.7	3.2	3.4
Rate of increase in deferred pensions post 2009 LPI 2.5%	2.5	2.5	3.2	3.4
Rate of increase in pension in payments fixed 5%	5.0	5.0	-	-
Rate of increase in pension in payments LPI 5% 1 September 2019	3.1	3.2	-	-
Rate of increase in pension in payments LPI 2.5% 1 September 2019	2.2	2.2	-	-

The Trustee resolved on 18 March 2025 to commence the winding up of the Scheme and therefore an assumption for future increases to Pensionable Earnings is no longer required.

Mortality assumptions for the two schemes:

The mortality assumptions are based on standard mortality tables which allow for future mortality improvements.

PASLEMC - The assumptions are that a member aged 65 will live on average until age 88 if they are male and until age 89 if female. For a member currently aged 50 the assumptions are that if they attain age 65 they will live on average until age 89 if they are male and until age 90 if female.

SSMP - The assumptions are that a member aged 65 will live on average until age 87 if they are male and until age 89 if female. For a member currently aged 60 the assumptions are that if they attain age 65 they will live on average until age 87 if they are male and until age 89 if female.

Analysis of scheme assets

Analysis of scheme assets
	PASLEMC		SSMP
	2025	2024	2025	2024
Equities	-	-	6.2	18.3
Gilts	-	-	40.4	38.8
Corporate Bonds	-	-	34.3	33.3
Property	-	-	0.0	5.8
Cash	0.3	0.4	19.1	3.8
Annuities	4.7	4.6	-	-

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

28. Defined benefit pension scheme commitments (continued)

The Methodist Ministers' Pensions Scheme (MMPS)

The accounting treatment and judgements made in respect of the MMPS are set out in Note 2. The defined benefit pension scheme position in respect of the MMPS that would have been charged to these financial statements had the scheme been included are set out below. The FRS102 Calculations were carried out by Debra Smith, Fellow of the Institute and Faculty of Actuaries, BWCI Consulting Ltd.

a. The amounts that would have been charged to the Statement of Financial Activities are as follows:

----- Start of picture text -----
2025 2024
£000 £000
Service cost 9,696 9,696
Interest cost on scheme liabilities 17,416 17,100
Interest Income on plan assets (20,202) (20,699)
Interest on unrecognised assets - -
Net Finance Costs (2,786) (3,599)
----- End of picture text -----

b. The amounts that would have been charged to the Statement of Financial Activities as recognised gains and losses are as follows:

----- Start of picture text -----
|||| |---|---|---| |2025|2024| |£000|£000| |Actual Return on Scheme assets|(7,317)|27,391| |Amounts included in net interest on the net defined liability|(20,202)|(20,699)| |Other Actuarial gains/losses|39,390|(24,834)| |Movement in unrecognised assets|(12,388)|13,754| |Re-measurement gains and losses recognised in SOFA|(517)|(4,388)|

----- End of picture text -----

c. The changes in the present value of the defined benefit obligation were:

----- Start of picture text -----
|||| |---|---|---| |2025|2024| |£000|£000| |Opening defined benefit obligation|359,816|333,682| |Service cost|3,093|2,989| |Interest cost|17,416|17,100| |Cost of benefit Changes|-|-| |Contributions by members|3,435|3,292| |Benefits paid|(23,007)|(22,081)| |Actuarial (gains)/losses|(39,390)|24,834| |Closing defined benefit obligation|321,363|359,816|

----- End of picture text -----

The weighted average duration of the liabilities of the Scheme was 10 years as at 31 August 2025

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

28. Defined benefit pension scheme commitments (continued)

d. The changes in the fair value of the plan assets during the year were:

d. The changes in the fair value of the plan assets during the year were:
	2025	2024
	£000	£000
Opening fair value of scheme assets	411,505	395,831
Interest income on plan assets	20,202	20,699
Contributions by employers	4,637	8,211
Contributions by members	3,435	3,292
Benefits paid	(23,007)	(22,081)
Administration expenses	(1,229)	(1,139)
Actual return less interest income on plan assets	(27,519)	6,692
Closing fair value of scheme assets	388,024	411,505

The total assets and liabilities of the MMPS at 31 August were:

The total assets and liabilities of the MMPS at 31 August were:
	2025	2024
	£000	£000
Closing defined benefit obligation	(321,363)	(359,816)
Closing fair value of scheme assets	388,024	411,505
Net defined benefit scheme asset	66,661	51,689
Assets that would not have been recognised, had the scheme been included	12,388	13,754
Net defined benefit asset	79,049	65,443
The principal actuarial assumptions at the balance sheet date in respect of the Scheme were:
	2025	2024
	%pa	%pa
Discount rate at end of year	6.1	5.0
Discount rate at start of year	5.0	5.3
Inflation	3.2	3.3
Rate of increase in pensionable earnings	3.4	3.5
Rate of increase in deferred pensions pre 2009	2.9	3.0
Rate of increase in deferred pension post 2009	2.5	2.5
Rate of increase in pension in payment main benefits CPI LPI 5%	2.9	3.0
Rate of increase in pension in payment main benefits CPI LPI 2.5%	2.1	2.1
Rate of increase in pension in payment AVCs RPI LPI 5%	3.1	3.2
Rate of increase in pension in payment AVCs RPI LPI 2.5%	2.2	2.2

The Methodist Church in Great Britain

Notes to the consolidated financial statements for the year ended 31 August 2025 (continued)

28. Defined benefit pension scheme commitments (continued)

The mortality assumptions for the Methodist Ministers’ Pension Scheme were:

The mortality assumptions are based on standard mortality tables which allow for future mortality improvements. The assumptions are that a member aged 65 will live on average until age 88 if they are male and until age 89 if female. For a member currently aged 55 the assumptions are that if they attain age 65 they will live on average until age 88 if they are male and until age 89 if female.

The major categories of plan assets as percentage of total plan assets for the Scheme were:

	2025	2024
	%	%
Equities	-	5.4
Gilts	-	0.1
Corporate Bonds	49.0	47.0
AVC Fund	0.9	-
Cash	1.2	1.0
Liability driven Investment	26.9	30.6
Asset Backed Securities	9.7	4.4
Impact investing	12.3	11.5

The Methodist Church in Great Britain

The membership 2024/25 and 2025/26 are listed below:

Connexional Council (from 1 September 2024):

2024/25

The Revd Richard J Byass The Revd Helen D Cameron The Rev Dr Joanne Cox-Darling Mrs Carolyn Godfrey The Revd David M Goodall Mr Keith Hickey The Revd Dr Sonia M Hicks (Chair) The Revd Beverley Hollings The Revd Dr Jonathan R Hustler The Revd Dr Michael J A Long

Mrs Anna Malnutt Prof David Matthews The Revd Gillian M Newton The Revd Nicholas A Oborski The Revd Sarah J Parkin Ms Alethea Siow Mr Paul Spray The Revd Timothy A Swindell Mrs Dawn Wood

Connexional Council (from 1 September 2025):

2025/26

The Revd Richard M Andrew The Revd Mucharutya Chisvo The Revd Dr Joanne Cox-Darling Mrs Barbara Easton Mr Matthew Forsyth Mr Tom Hart Mr Keith Hickey The Revd Dr Sonia M Hicks (Chair) The Revd Dr Jonathan R Hustler

The Revd Dr Michael J A Long Mrs Anna Malnutt Prof David Matthews Mrs Judith Neal The Revd Sarah J Parkin Revd Cliff Shanganya Ms Alethea Siow Mr Paul Spray Mrs Dawn Wood

The Methodist Church in Great Britain

The Resourcing Committee (until 31 August 2025)

The membership for the 2024-25 year is listed below:

Voting Members

Ruby Beech Sharon Clutterbuck Ian Hancock Alethea Siow (Chair from 1 September 2024) The Revd Eleanor Smith Michael Spurr Sarah Strickland

Non-voting members

Members of the senior management group may attend by invitation as the business shall require.

The Audit and Risk Assurance Committee

The membership of the committee is:

Voting Members Sarah Atwell-King Adrian Burton Keith Hickey (Chair from 1 September 2024) Sue Mortimer Michael Rickard

Non-voting members

Members of the senior management group may attend by invitation as the business shall require.

The Methodist Church in Great Britain

Reference and Administrative Details Names and addresses The address of the Office of the Conference for the purposes of the Methodist Church Act 1976 and any other legislation is:

Methodist Church House 25 Tavistock Place London WC1H 9SF Tel: 020 7486 5502 Web: www.methodist.org.uk

Executive Officers The Revd Dr Jonathan R Hustler The Revd Michaela A Youngson Mr Douglas Godfrey-Swanney Mrs Joanne Anderton

Custodian Trustee: Trustees for Methodist Church Purposes Central Buildings Oldham Street Manchester M1 1JQ Methodist Missionary Trust Association Methodist Church House 25 Tavistock Place London WC1H 9SF

Investment Managers: Central Finance Board of the Methodist Church Methodist Church House 25 Tavistock Place London WC1H 9SF

Bankers: HSBC plc Westminster Branch 4-8 Victoria Street London SW1H 0NJ

Independent Auditor: RSM UK Audit LLP Statutory Auditor Chartered Accountants 103 Colmore Row Birmingham West Midlands, B3 3AG

Solicitors : Farrer & Co 66 Lincoln's Inn Fields London WC2A 3LH