CINDERFORD Rugby Club is set to reduce its playing budget by around 25 per cent next season, following the introduction of a new Rugby Football Union (RFU) funding system.

In previous seasons, National League clubs received fixed payments from the RFU, but that has now been replaced by a new system that looks more closely into a club's expenses.

Nick Eastwood, finance director of the RFU, told The Forester: "The old funding system was a relic of something we put in place in 1995 when the game first went professional.

"We think there are better ways of allocating money than through unconditional grants.

"Clubs will have all their travel expenses and insurance premiums paid. They will now have access to grants, unlike before, as well as interest-free loans. If a club is looking to build a new clubhouse, for example, the benefits are potentially lucrative."

Cinderford RFC treasurer Barry Holmes believes his club will be a lot worse off under the new system.

He said: "Last year we got around £62,000, this year it will be around £38,000. There is also no EDF Trophy, which guaranteed us £6,000, and we have four extra games to play. That means four weeks' extra wages and two extra away trips.

"Clubs will have to rely more on sponsorship.

"We're reducing our playing budget by 25 per cent.

"The four coaches and key players have accepted pay cuts and that will go right the way down the squad.

"We're not on our own. In three or four years I think the new Championship will be littered with London clubs."

Lydney Rugby Club also face a pay cut from the game's central body, but director of rugby Colin Henderson (pictured) believes the changes will not have such a big impact.

He said: "We'll get £6,050 travelling expenses, last year we got around £11,000. However, the way I read things, we'll get insurance and referees paid for, so we won't be a lot worse off. "Long-term, I think its pushing everyone back to being amateurs. We estimated our travel costs for this season to be £14-15,000, so we're not getting half of what we asked for.

"It's slightly unfair that we are one of four clubs in our division (along with Dings Crusaders, Bridgwater and Clifton) who won't get paid for any overnight stays. We've still got trips to Worthing, Southend, Mount's Bay and Canterbury.

"There's also the money lost from the National Trophy – when we played Exeter a couple of years ago we got £16,000 which basically funded our season."

Nick Eastwood says it is not the RFU's intention to force semi-professional clubs out of the game.

He said: "Semi-professional clubs who are financially strong won't go back to being amateurs. Clubs might have to trim back on player costs, but the RFU is only responsible for a small part of a club's revenue.

"It all depends on individual clubs, but we feel this is the right thing to do."