On the 22 January 2026, the UK Government confirmed the end of Listed Places of Worship Grant Scheme. It will be replaced by a £230 million package to protect and preserve heritage buildings, including listed places of worship. We welcome this, but there's a catch. Churches will now have to pay tax.
Here is our initial response to the end of the scheme and the new funding that has been announced:
Sir Philip Rutnam, Chair of the National Churches Trust, said:
“We welcome the announcement of a new capital funding scheme for the country’s religious heritage. We have been campaigning for this for some time, and we look forward to understanding how the new scheme will operate. Churches depend overwhelmingly on volunteers so the scheme will need to be simple, accessible and predictable if it is to be a success.”
“However we are very concerned that in future listed places of worship will 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. It means that in future local people will have to raise money not just to repair roofs and towers but to pay a 20% tax to the Government.”
“Museums and galleries offering free admission don’t have to pay VAT on repairs, but in future churches will. We call on the Government to end this unfairness and not to expect local volunteers to pay these extra taxes.”
You can read the Government's announcement in full here.
We will update this page once we know more.
The Listed Places of Worship Grants Scheme is a lifeline for historic churches – saving them 20 per cent on repair costs. But the future of the scheme is uncertain – and churches, chapels, meeting houses and cathedrals across the country are now paying up to a fifth more for repairs. To fix urgent needs like leaking roofs and crumbling towers. Some of them cannot afford to do these repairs anymore, putting heritage and church buildings across the country at risk of disrepair and closure.
The Department of Culture, Media and Sport have now been given their budget for the next few years. It is now up to them to decide if they will fund the scheme.
Hear from two brilliants churches whose future has been put at risk due to the changes to the scheme. And find out how you can help us save church buildings across the country.
Even if you have already written to your MP, please consider writing again. The Department for Culture, Media and Sport will be making a decision on this soon, so any letters received now will have an impact on their decision. Losing this scheme would be disastrous for listed places of worship of all faiths across the UK.
have benefitted from this scheme and have been supported in keeping their buildings windproof and watertight, safeguarding the future of some of our most important local heritage.
that applied for grants from us were eligible to receive this vital refund of VAT to help towards projects ranging from restoring crumbling towers to fixing a leaking roof.
that places of worship will have to bear if the scheme is scrapped. This would be a devastating blow for churches, many of which are already struggling with the high cost of keeping their buildings open and in good repair.
The UK Government has decided:
The scheme offers tremendous value for money. For every £1 invested in a church building, £16 of social good is generated. We strongly believe that the scheme should be made permanent – it's vital to help these buildings stay open, serving local people, and it’s the poorest and most isolated who will suffer most if these buildings are forced to close.
We will continue to work with the Government to ensure the value of these buildings is understood.
We are not going anywhere. As the leading UK church heritage charity, we will be doing all we can to urge the Government to make this scheme permanent and reverse the cuts and the budget cap.
Sir Philip Rutnam's letter is published in The Spectator. In the letter, Rutnam highlights the massive heritage crisis facing the country's magnificent buildings. He argues that a way the could be protected is to renew the Listed Places of Worship Grants Scheme permanently and remove its devastating £25,000 cap.
Philip Rutnam, Chair of the National Churches Trust, is quoted in the Daily Express about how the future of church buildings - our biggest heritage challenge - has been exacerbated by Labour’s decision to cut the budget of the Listed Places of Worship Scheme, which provides VAT relief for church repairs, by almost half as well as impose a devastating cap on the scheme.
At the 'Great Expectations' conference facilitated by the National Churches Trust at the V&A Museum in London, The Most Revd Stephen Cottrell, the Archbishop of York, called on the Government to make the Listed Places of Worship Grant Scheme – covering VAT on repairs – to be made permanent, saying that churches are "incredibly anxious" about the future of the "lifeline" scheme. This message was then amplified by the Church Times and Premier Radio.
"Hundreds of Britain’s churches may be forced to close in the next five years as the cost of maintaining heritage buildings becomes unmanageable", says the Guardian covering our National Churches Survey. "Earlier this year, the government imposed VAT on repairs to places of worship costing more than £25,000, placing an additional burden on communities already dependent on fundraising, grants and donations to maintain heritage buildings." “Without intervention, the risks are enormous – we will lose more and more of these buildings and all they embody for good," says Sir Philip Rutnam, Chair of the National Churches Trust.
The National Churches Trust’s Head of Fundraising and Public Affairs, Ben Sims, spoke with Eleanor Burleigh at the Express about how changes to the Listed Places of Worship Grants Scheme, which provides vital VAT relief on church repairs is forcing small towns and villages to spend tens of thousands on conservation projects to keep their churches open and in use.
The budget for the scheme this year has been reduced by almost half. Following concerns from churches, denominations and charities, including National Churches Trust, about the remaining budget for the scheme, the Department for Culture, Media and Sport has created an online tracker. This shows how much money has been spent and will help churches to know if they are likely to be successful in their grant claim. The tracker will be updated every fortnight.
Karl Newton, Deputy CEO of the National Churches Trust, was interviewed by Claire Manning on BBC Spotlight (South West England) on how changes to the Listed Places of Worship Grants Scheme is affecting churches. Two churches, St Grada & Holy Cross in Cornwall and Ilfracombe Pip and Jim's in Devon, two churches we've given grants to, were also interviewed. Read the news article that went out alongside the TV feature.
This is another piece of research that demonstrates the value of church buildings and the unique and treasured heritage that is found inside them. Funding church buildings makes not just economic sense, but has public support too, as they want to see these buildings saved for today and for future generations. It is a reason why the Government should act now on the Listed Places of Worship Grants Scheme
Joe Ware shares how Government cutbacks of a funding lifeline for listed churches, the Listed Places of Worship Grants Scheme, has put historic buildings and the art they house at risk. There are also interviews with three churches that are now at risk: Newark St Mary Magdalene in Nottinghamshire, Christchurch Priory in Dorset and Old Warden St Leonard in Bedfordshire.
The details of the Spending Review have been announced by Chancellor Rachel Reeves. The Department of Culture, Media & Sport [DCMS] has been given a £7.5 billion budget for the next three years. One choice DCMS must now make is whether to fund the Listed Places of Worship Grants Scheme – a scheme that has so far saved over 13,000 churches but now faces an uncertain future. Read more.
During a Westminster Hall debate today – 13 May 2025 – MPs from different political parties urged the Government to fund church buildings if they want to continue to see vulnerable people helped and heritage saved. Read more about the debate and why the MPs want to see The Listed Places of Worship Grants Scheme saved in the upcoming Spending Review.
Harriet Sherwood at the Guardian shares how churches fear new tax rules - the changes to the Listed Places of Worship Grants Scheme - will put major restoration programmes at listed places of worship in jeopardy. Sir Philip Rutnam, chair of the National Churches Trust, contributes to the article.
Sir Philip Rutnam, Chair of the National Churches Trust, writes for the Daily Express about how changes to The Listed Places of Worship Grants Scheme have hit churches hard. He makes the case that if you want to protect our nation’s heritage and secure its future, the best thing to do is write to your MP about the scheme.
The National Churches Trust responds to the decision made by the UK Government on the future of the Listed Places of Worship Grants Scheme. Find out more about the decision and what this will mean for churches.
Heritage organisations and those responsible for church buildings across different nations and denominations have come together to call on the UK Government to renew this vital scheme. Read their letter to the UK Government about why the scheme must be renewed.
On Wednesday 22 January there will be debate in Parliament about the Listed Places of Worship Grants Scheme. Find out more about the Westminster Hall debate and how you can get involved and watch the debate online.
Read the letter Sir Philip Rutnam, Chair of the National Churches Trust, sent to the Treasury in which he calls for the UK Government to renew the Listed Places of Worship Grants Scheme. You can also use it as a template to contact your own MP.
In her Autumn Budget, the Chancellor Rachel Reeves made no announcement about the extension of the Listed Places of Worship Grants Scheme. This is concerning – and why we need your help. Find a template letter here to help you write to your MP.
Hear from two concerned churches about why the Listed Places of Worship Grants Scheme must be renewed by the UK Government. And find out what you can do to help campaign on this vital issue.
Even if you have already written to your MP, please consider writing again. Losing this scheme would be disastrous for listed places of worship of all faiths across the UK. Thank you for your support.
