FACT CHECK: what we know about the new funding for churches and VAT changes

National Churches Trust

from National Churches Trust

On the 22 January 2026, the UK Government confirmed the end of Listed Places of Worship Grant Scheme. It will be replaced by a £92 million four-year-fund called the Places of Worship Renewal Fund. Read our analysis below – on what’s been revealed so far, and what must happen for the scheme to be successful in keeping churches open and in use. 

Is this 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?

We are unsure if VAT costs will be able to be claimed back from the scheme. From 1 April 2026, all repairs and maintenance that take place now at any listed place of worship will be subject to the full VAT costs at 20% as the Listed Places of Worship Grant Scheme will have ended. 

Will the Places of Worship Renewal Fund still help all listed places of worship in England, Scotland, Wales/Cymru and Northern Ireland?

No. The Places of Worship Renewal Fund will still be a fund for all listed places of worship, so churches, chapels, meeting houses and cathedrals as well as synagogues, temples and mosques. However, it will be only available to listed places of worship in England only. Nothing has yet been released about any additional funding or support for places of worship in Scotland, Wales/Cymru or Northern Ireland.  

Will it operate in the same way as the Listed Places of Worship Grant Scheme?

Read here

Read also: HM Government announces future funding for listed places of worship by Frank Cranmer, Law & Religion UK