The Government has made its long-awaited announcement on the replacement of the Listed Places of Worship Grant Scheme, which will come to an end on 31 March.
The Department for Digital, Culture, Media & Sport revealed last week that the scheme will be replaced by a new Places of Worship Renewal Fund, which will be worth £92 million over four years.
The Listed Places of Worship Grant Scheme was introduced by the then Chancellor Gordon Brown in 2001 and has awarded a total of nearly £350m.
The scheme was worth £42m a year in 2024/25, but this was reduced to £23m for 2025/26, its final year.
Unveiling the new fund, 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.”
The Listed Places of Worship Grant Scheme had provided grants to cover the 20% VAT paid on repairs and renovations over £1,000 to listed sites of worship, including churches, synagogues, mosques and temples.
It is understood that the replacement fund will not explicitly cover the VAT paid on work done, but church heritage leaders say they require further details from the Government before they can be sure about the precise impact of the changes.
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 – after more than 20 years – will mean added pressure on local fundraisers and inevitably a drain on other sources of funding. We will work with the wider sector and the Government to see how that burden can be alleviated.
“We will continue to work closely with other church buildings’ charities and funders, Historic England and other denominations and faiths, as well as the Government, in this important period of transition.”