The UK Government has now opened the Places of Worship Renewal Fund – a new £92 million four-year-fund to help listed churches in England with repairs. It is good news that the Government sees churches as worth investing in – especially as the future of churches is our biggest heritage crisis. Read our analysis below – on how the Places of Worship Renewal Fund will work and what it will fund, how it compares to previous support from the UK Government, and what must happen for churches across the whole of the UK to be kept open and in use.
Is this new fund an increase in funding for historic churches?
No. The £92 million pounds is going to be split across four years, so it works out at £23 million per year. In 2025/2026 the budget for the Listed Places of Worship Grant Scheme was £23 million per year, but in 2024/2025 the budget was £42 million. The funding will actually be a drop in real terms, as it will not rise with inflation.
Will VAT costs on repairs be reclaimable?
All repairs and maintenance that take place now at any listed place of worship will be subject to the full VAT costs at 20%. There is no reclaim scheme available for places of worship. For the churches that are successful in receiving a Places of Worship Renewal Fund grant, some of the VAT works may be recoverable.
Will listed places of worship of all faiths be eligible for funding?
Yes. This largely matches the Listed Places of Worship Grant Scheme in that all listed places of worship will be eligible, so this includes churches and chapels but also synagogues, temples and mosques. For the building to be eligible for funding, they must hold at least six public worship services a year.
Will the scheme support places of worship in Scotland, Wales/Cymru and Northern Ireland?
No. It will be only available to listed places of worship in England only. Churches in Scotland, Wales/Cymru and Northern Ireland at the moment have no additional funding and now no access to VAT relief, meaning they are 20% worse off.
The Department for Culture, Media and Sport has directed churches in these areas to apply to The National Lottery Heritage Fund, and, if based in Northern Ireland, the Department for Communities; if based in Scotland, Historic Scotland; and if in Wales, Cadw.
Many denominations will not take funding from The National Lottery Heritage Fund because of its association with gambling. In addition, the other three organisations listed above have not had an increase in funding, so it is unclear at this stage how they might be able to meet this increased demand.
Will it operate in the same way as the Listed Places of Worship Grant Scheme?
No. The Listed Places of Worship Grant Scheme was essentially run as a VAT reclaim scheme. It was managed by The Department for Culture, Media and Sport and to claim VAT costs, all listed places of worship would need to do was submit their receipts online for repairs and maintenance that had been carried out. From 2001, when it was set up, to March 2025, listed places of worship could reclaim the full cost of VAT, whereas from March 2025 to April 2026, the Labour Government introduced a cap of £25,000. They also reduced the total budget of the Scheme from £42 million to £23 million per year.
The Places of Worship Renewal Fund will be run as a competitive grants scheme – indeed Historic England have noted that demand is “expected to be high”.
How many churches will benefit from the new Fund?
The new fund is likely to be able to support around 100-150 listed places of worship a year, awarding grants between £10,000 and £1 million. The Listed Places of Worship Grant Scheme supported around 5,000 each year through VAT reclaims.
What is the process of applying for a grant from the Places of Worship Renewal Fund?
The new grant scheme will be managed and delivered by Historic England and will be a two-stage process.
Listed places of worship will have to complete an Expression of Interest (EOI) and submit this to Historic England.
Successful applicants will then be invited to apply for a grant, from which there are three streams:
- Scheme one: £10,000-£50,000
- Scheme two: £50,000-£350,000
- Scheme three: £350,000+ capped at £1 million
What types of work will be covered by the new Fund?
For projects to be eligible, they need to be about repair and preservation work to the building. Historic England will consider:
- Capital works – repair and preservation. As part of this, professional fees and non-recoverable VAT may be included in the grant.
- Minor repairs – small grants of up to £50,000 may be awarded in stream one. Minor repairs will only be considered in stream two or three (larger grants) when they are part of a larger Places of Worship Renewal Fund project that supports the long-term resilience and usability of the building, occur in the same building or location and are cost effective to be carried out at the same time eg saving costs on scaffolding.
The fund will cover some other things, but must be part of a larger repair project still:
- Improvements and alterations will only be considered if they are part of a larger Places of Worship Renewal Fund repair project and will increase the future resilience and useability of the building.
- Project development; projects that require preparatory work to ensure the capital works are appropriate, may include the cost of that development work in the application but standalone project development cannot be funded.
- Adaptive reuse building modifications; projects that will help eligible buildings to remain or become functional, including adaptations for reuse and/or accessibility will only be eligible as part of a larger Places of Worship Renewal Fund application ie a large repair project.
- Heritage interpretation; for example, physical labels and panels providing heritage information will be funded only as part of wider capital works projects.
What it will not cover, which the Listed Places of Worship Grant Scheme covered, is:
- Ongoing maintenance tasks
- Facilities or accessibility projects where there are no urgent repairs e.g. adding in a kitchen or toilet
- Net zero/carbon interventions where there are no repairs needed
Who will decide which listed places of worship receive grants?
Historic England will decide who gets funding and what amount. They are looking to employ new Support Officers to help with the applications further down the line. Through the work of our own Support Officers based in every UK nation, we know how helpful these posts are.
Historic England will award grants based on the following criteria:
- The urgency of repair and risk of loss
- Community benefit
- The project’s deliverability and value for money
- Projects from places of worship with the least available budget and capacity to raise funds
Will there be any priority given by Historic England?
No denomination will be given priority for the grants. However, priority will be given to projects in areas of England with the highest level of deprivation and need for investment. Prioritisation will focus on:
- Firstly, projects that fall within (or serve) areas of Indices of Multiple Deprivation (IMD) 1-3 and fall within areas identified through the Community Needs Index (CNI)
- Next, projects that fall within (or serve) areas of IMD 1-3
- For projects that do not fall within (or serve) the above defined areas of deprivation, Historic England will then prioritise those projects which have the greatest financial need and urgency of repair and provide the greatest community benefit.
This is where the Places of Worship Renewal Fund differs with the Listed Places of Worship Grant Scheme; the latter did not have any priority criteria – all places of worship were treated equally under a first come first serve basis.
With the Places of Worship Renewal Fund being competitive and having a much lower budget than the the Listed Places of Worship Grant Scheme traditionally has had each year, it is likely we will see fewer grants awarded overall and grants concentrated in specific areas.
There is also an additional need for the repair projects to be focused on one of Historic England’s priorities, which are:
- Help more people to connect with, enjoy and benefit from the historic environment
- Use heritage to improve civic pride, prosperity, and wellbeing
- Achieve a positive change and sustainable future for historic places, including buildings, landscapes, archaeological sites, and marine assets
- Ensure heritage plays an important role in the fight to limit and manage the effects of climate change
There seems to be a disconnect here with what places of worship primarily exist for and the added emphasis on them taking on additional roles, for example boosting prosperity. While we know that churches do provide a huge amount of social and community value, we know that they are under resourced as it is.
Will there be a rolling deadline?
No. There will be two windows each year in which Expressions of Interest will be received. This is different from the Listed Places of Worship Grant Scheme, under which you could submit claims throughout the year, depending on your own project timelines.
I care for a listed place of worship – how can I apply to the Places of Worship Renewal Fund?
You will need to apply via Historic England’s grant portal. The first stage is an Expression of Interest you must complete. Click here to find out more and apply.
Here is our analysis of the scheme – and what must happen for it to be successful in helping keep churches open and in use
The National Churches Trust has long campaigned for a capital fund scheme for churches. The future of church buildings is the biggest heritage crisis facing the UK. We are thankful that the Government listened and have renewed support for churches – this could have ended on April 1 – but MPs and policymakers have reconsidered.
However, this should be seen as a first step in the process. It’s imperative we get this right so that historic places of worship will benefit from the new scheme. And there are issues around tax that must be addressed and made fairer across the board.
1. Churches depend overwhelmingly on volunteers; the scheme needs to be simple, accessible and predictable
We are concerned that this grant application process could still be burdensome for churches, many of which rely on volunteers and do not have paid staff who can fill out expressions of interest and funding applications. Through our Support Officers, who work on the ground in every UK nation, we know that many churches have been put off applying to grant funders, such as The National Lottery Heritage Fund, because of the long application process with no guarantee of success. With such a competitive Fund, churches could be put off applying.
There is also a concern here that churches are being asked to take on more responsibilities – despite being under resourced. To be eligible, places of worship must meet one or more of Historic England’s own priorities, which are not related to their primary purpose.
2. Wales/Cymru, Scotland and Northern Ireland must not be neglected – places of worship there need support too
We understand that Historic England has a remit of supporting places of worship in England only. The Department for Culture, Media and Sport must urgently work out how they can deliver support in Wales/Cymru, Scotland and Northern Ireland. While heritage is a devolved issue, it is disappointing that a UK-wide Scheme has been replaced with an England-only one. Our own research shows that churches in the nations are struggling too – the heritage crisis is not concentrated on England alone.
3. Projects with a quick-turn-around should not be overly prioritised
Repair projects are often many years in the planning because they require specific permissions, materials and expertise. The system should not penalise well thought-through and considered projects that will take longer but bring lasting benefits to the community and protect and preserve the building – and the nation’s heritage – for the long-term.
4. Rural churches must not be unfairly penalised
Rural churches face unique challenges and so should not be compared with suburban or urban churches. For example, some rural churches are in places in which any settlement or village has disappeared over time and so are more isolated or they serve small numbers of people. This should not discount them as not only is their heritage value often significant, but they are typically the only public building in the area and provide an invaluable service to local people.
The big question – what about VAT?
In their initial announcement, the Department for Culture, Media and Sport said they wanted to: “bring these important buildings into line with other heritage assets. [The new fund] will give them access to the same level of financial support from the government as historic houses, monuments and other heritage sites.
However, listed places of worship now have to bear the full cost of VAT on repairs. This brings to an end a system that has operated successfully for over 20 years, where places of worship could reclaim their VAT costs. It means that local people will have to raise money not just to repair roofs and towers but to pay a 20% tax to the Government.
Churches, unlike historic houses, are the home to a whole range of activities that support the local community including foodbanks, mental health support, and community groups.
Museums and galleries offering free admission don’t have to pay VAT on repairs, but churches now do.
What the Government must do to make things fair across the board
The best thing the UK Government can do is reverse its decision to stop refunding VAT on repairs to listed places of worship.
It is unfair that museums and galleries with free admission pay no VAT on their buildings, but churches must now pay the full 20%, even though they provide essential services to their local communities and collectively house collections far larger than any museum.
It is not right that it costs 0% to demolish a listed church, but to charge local communities 20% to maintain and care for their building.
Churches across the UK save the NHS costs of £8.4 billion a year from community support they host and run in their buildings. Removing this tax burden would make a huge difference to churches but would be a small thing for the UK Government to do.
Next steps
Please consider writing to your MP about the tax burden churches now face – especially if it impacts your church, chapel, meeting house or cathedral. The more people who write to their MPs, the more impactful it will be.
It was thanks to you raising concerns with your MPs about churches that the new Places of Worship Renewal Fund has come about, so please do get in touch with your local representative. This could be your representative in Westminster, Holyrood, the Senedd, or Stormont.
In recent months the Conservatives, Liberal Democrats and Reform parties have all committed to reinstating the Listed Places of Worship Grant Scheme. We continue to be in touch with all political parties to share how invaluable churches are – both to their communities because of the brilliant support they host and run but also because of their significant architectural value.
At the National Churches Trust we will continue to speak up for places of worship in every nation, to help keep them open and in use.
