A Government scheme that covers costs from repair and renovation projects has closed six weeks early – a development that could leave hundreds of places of worship “in the lurch”, according to the head of the National Churches Trust.
The Department for Culture, Media & Sport (DCMS) confirmed last month that it was scrapping the Listed Places of Worship Grant Scheme this spring.
The scheme, which provides grants to cover the 20% VAT paid on work worth over £1,000 at churches, synagogues, mosques and temples, had been due to end on 31 March.
However, the £23 million the Government put aside for the scheme has run out a month and a half before the end of the financial year.
The Government had cut the scheme’s budget for 2025/26 from £42 million in 2024/25, despite warnings from heritage charities, churches and other denominations that it would not be enough to meet demand.
The scheme will be replaced by a new Places of Worship Renewal Fund, which will also be worth £23 million a year over four years.
Details of how the replacement scheme will work have not yet been released.
Revealing on its website that the scheme would be closing early, the National Churches Trust (NCT) said: “The new Places of Worship Renewal Fund has not been set up yet – leaving churches with no idea about what support they can expect to receive from Government.
“DCMS announced the Listed Places of Worship Grant Scheme changes in March last year. Why is a new scheme not up and running already?
“We now are likely to have a significant period where there is no Government support available to churches – something that was entirely avoidable.
“The new fund is just £23 million a year – and will be subject to tax. The demand for the Listed Places of Worship Grant Scheme and the money running out show that this is not enough to protect and save historic places of worship.”
Sir Philip Rutnam, chair of the National Churches Trust, added: “This leaves potentially hundreds of churches in the lurch.
“After 25 successful years, the Government has removed a lifeline for churches which was introduced by a Labour chancellor in 2001.
“With thousands of churches at risk, this is yet another blow to our national heritage as many will now be unable to pay for urgent repairs.”
The Listed Places of Worship Grant Scheme was introduced by the then Chancellor Gordon Brown in 2001. It has been renewed by successive Governments and has awarded a total of nearly £350m.
Unveiling the replacement fund last month, culture secretary Lisa Nandy said: “This will keep the doors open and the lights on at thousands of arts organisations, museums, libraries and heritage buildings that might otherwise have been at real risk of closing.”
At the time, Emily Gee, director for cathedral and church buildings for the Church of England, said: “We look forward to seeing the details and working out what it means in practice for the Church of England’s 12,500 listed church buildings.
"We warmly welcome the Government’s Places of Worship Renewal Fund and the certainty of this investment in repairs and improvements for eligible parish and cathedral church buildings.
“We also welcome the Government’s recognition of the special role of historic churches in national life – church buildings are national treasures for the common good.
“However we are very concerned that the end of the Listed Places of Worship Grant Scheme will mean added pressure on local fundraisers and inevitably a drain on other sources of funding.”
The Diocese of Oxford will share more details of the replacement scheme as soon as they are available.