On Thursday 22 January the Government announced a £1.5 billion package of funding for cultural organisations to restore national pride.
They key news for churches is:
- The Listed Places of Worship Grant Scheme (VAT Recovery) will end on 31 March 2026 and will not be renewed. https://listed-places-of-worship-grant.dcms.gov.uk/
- A new grant scheme will be launched in the new financial year.
“…In recognition of the important role religious heritage buildings play in the UK’s national story, a new £92 million fund called the Places of Worship Renewal Fund will replace the £23 million Listed Places of Worship Grant Scheme and bring these important buildings into line with other heritage assets. It will give them access to the same level of financial support from the government as historic houses, monuments and other heritage sites…”
This new grant scheme will have nothing to do with VAT. From the 1 April 2026 you will no longer be able to reclaim any VAT. The new Places of Worship Renewal Fund will be more like a ‘normal’ grant scheme with a formal application process and grant panel.
The details of this grant scheme still need to be worked out by DCMS. We currently know the following:
- The new grant scheme will run for 4 years from 2026/2027
- It will have a total pot of £92m, thus will average £23m a year
- It will be available in England only
- Only Listed Places of Worship will be able to apply
- It will be managed by DCMS in partnership with Historic England
- Criteria will be linked to Government policies, such as the important of Place and national identify, and supporting deprived areas
- It will be a capital grant focusing on repair and conservation work
Read the ministerial statement on the new grant:
https://questions-statements.parliament.uk/written-statements/detail/2026-01-22/hlws1266
You can read an evaluation of the LPWGS which helped to inform this decision here:
Evaluation of the Listed Places of Worship Scheme - Final report - GOV.UK
If you have any queries or concerns, please contact Holly Robinson, Historic Church Buildings Support Officer. https://www.elydiocese.org/parish-support/church-buildings/contact-the-team/
We will update you as soon as we have more details.