A Government decision to redistribute £100 million, used to finance more first degrees, could lead to a cut in the increasing number of young ordinands coming forward for training in the Church of England.

The Higher Education Funding Council has had its budget cut by £100 million a year. The Council said that it planned to save this money by not funding second qualifications equivalent to or less than someone's existing qualification. This would include most theological qualifications, reports Church Times

The cuts are to be enforced from next autumn and would leave the Church of England short of £1.5 million a year, according to experts. The cost to the Church per candidate is expected to be £2,500.

The Archbishop of Canterbury, Dr Rowan Williams, said he was very worried about the cuts and that he had received representations on the subject. However, he said that as yet he was unsure what the full impact on the Church of England would be.

Rev Dr Martin Seeley, Principal of Westcott House Theological College, Cambridge, was quoted by the newspaper as saying, "All colleges and courses training routes are threatened by this move, and it will have an impact on the Church. We hope we can get the Government to recognise the vital community role clergy perform."

The Cambridge Federation of theological colleges is expected to lose £120,000 per year as a result of the Treasury decision. Similar institutions are expected to be affected in the same way.

The Rt Rev Graham James, Bishop of Norwich said, the new policy was "worrying and misguided in itself, and contrary to the Government's policy of prompting life long learning".

He claimed the policy could affect the Church's "brightest and best students".

Bishop James continued, "Twenty-five per cent of candidates for training do not have a first degree, but the high proportion that does have one is a good thing; now it seems, the better the quality of the cohort, the more it is penalised. . .

"If we do not have an exemption, it could lead to less-well-trained clergy for the Church, and also for the wider civil society," reports Church Times.

The Church has made representations to ministers and wishes to press for exemptions for all clergy.

The Open University and Birkbeck College, London, are the institutions affected most by the cuts. The Open University faces a cut of £30 million in funding per year.

According to Dr Tom Butler, Bishop of Southwark, the cuts are also likely to affect the scheme in his diocese that ensures post-ordination training is validated by an academic institution. He added that at present institutions could reclaim the cost of validation from the Government.

A spokesman for the Church of England said the Church would submit written evidence to the Select Committee of the Department of Innovation Universities and Skills by 14 January.

In addition Bishop James has said he is seeking a meeting with Bill Rammell, the Higher Education Minister to present the concerns of the Church.