Funding for listed places of worship: Recent changes

Approximate read time: 10 minutes

On 25 June 2026, the House of Lords is scheduled to consider the following question for short debate:

Baroness Prentis of Banbury (Conservative) to ask His Majesty’s Government how the Places of worship renewal fund will differ from the Listed places of worship grant scheme.

1. Background: Places of worship in the UK

1.1 How many places of worship are there?

There are over 56,000 places of worship in the UK.^[1] The government has said that they collectively form “an important component of the UK’s built heritage” while Historic England, the public body responsible for England’s historic places, has noted that they provide spaces for worship as well as social and community events.^[2]

Some places of worship have been listed as buildings of special architectural or historic interest. Although there is no definitive figure, the government has estimated that the number of listed places of worship is around 21,000.^[3] This equates to nearly 38% of all the UK’s places of worship and 4% of all listed buildings. The government has also highlighted that places of worship are disproportionately represented at the highest listing grades. For example, in England, approximately 45% of buildings listed at grade 1 (and therefore of exceptional interest), are places of worship.^[4]

(Department for Culture, Media and Sport, ‘Evaluation of the listed places of worship scheme—final report’, 22 January 2026)

1.2 What are the challenges faced by places of worship?

1.2.1 Condition of buildings

Many places of worship, particularly those that have been listed, experience issues with maintenance and repair. Historic England currently has over 2,000 places of worship on its heritage at risk register (listed under site type ‘religious ritual and funerary’).^[5] It has explained that many of these buildings are in fair or good condition but have a significant problem with one major element.^[6] The main threats are failing roofs, rainwater goods and high-level stonework.

Government research has also highlighted issues with the condition of listed places of worship and the potential impact of such problems. In 2026, the government said that survey evidence had shown an overall deterioration in the condition of places of worship over the last five years.^[7] It said this implied that places of worship had been under pressure and that resources may not have been sufficient to sustain their repair and maintenance. It argued that this could in part reflect the specific challenges of the Covid-19 pandemic and its aftermath. Despite this, the survey also found that 51% of respondents expected the condition of their building to be in better condition in five years. However, 18% also felt that their place of worship was at risk of closure within the same time frame.

1.2.2 Financial concerns

Many places of worship face financial challenges to maintain their buildings in a good state of repair.^[8] Historic England has explained that the responsibility for the care of listed places of worship relies entirely on the efforts of local faith groups and communities, although it said that this is not widely understood. Research published by the body in 2025 showed that only 11% of the population appreciated that the responsibility is on local people rather than national church bodies, local councils or heritage organisations.^[9]

The charity, the National Churches Trust, has highlighted the financial challenges of looking after church buildings.^[10] It has stated that “routine maintenance, even for a modest parish church can run to thousands of pounds a year”, with major works easily costing into the hundreds of thousands.

2. Funding for listed places of worship

The funding challenges faced by listed places of worship has led to successive governments putting support in place. The listed places of worship grant scheme (LPWGS) provided support from 2001 until earlier this year when it was replaced by the places of worship renewal fund (PWRF). Details of both schemes are set out below.

2.1 Places of worship renewal fund (from January 2026)

In January 2026, the government announced a places of worship renewal fund for England.^[11] It said that the scheme would “target our capital funding where it is needed most, focusing on repair and conservation work”. It also explained that Historic England would deliver the fund which opened in May 2026.^[12]

Providing further information, Historic England explained that the fund would support urgent repairs and essential improvements to listed places of worship in England.^[13] Its grants would range from £10,000 to £1mn for capital projects that “keep buildings safe, open and in public use”. Any listed place of worship in England can apply, of any faith or denomination, provided it is an active place of worship. Priority would be given to projects in areas with the greatest need for investment, and those that bring the most community benefit.

The government has allocated a total of £92mn to the fund over a four-year period, with £23mn per annum.^[14] The fund would also be divided into three streams based on the size of the project:

• £10,000 to £50,000 (small grants)
• £50.001 to £350,000 (medium grants)
• £350,001 to £1mn (large grants)

Historic England has warned that the fund is competitive and that not all applicants would be successful. In April 2026, Marsha De Cordova, the second church estates commissioner and Labour MP for Battersea, gave a brief overview of the scheme to the House of Commons:

Priority will be given to buildings in areas of high deprivation or community need. Applications are expected to start with an expression of interest, followed by a full application, with efforts made to minimise administrative burdens on smaller parishes.^[15]

Further information on how to apply and how the application process would work is set out on Historic England’s website.^[16]

2.2 Listed places of worship grant scheme (2001 to 2026)

The places of worship renewal fund (PWRF) replaced the listed places of worship grant scheme (LPWGS), which stopped accepting applications on 31 March 2026.^[17] The LPWGS was established in 2001 by the then Labour government.^[18] The scheme provided relief on the liability of VAT on certain works of repair and maintenance to listed places of worship in recognition of the challenges faced by such buildings in addressing their repair and maintenance needs.

The LPWGS was originally intended as an interim measure while the government sought permission from the EU to introduce a reduced 5% rate of VAT on repairs and maintenance of listed places of worship.^[19] It was funded by HM Treasury and there was no formal limit on the amount that could be claimed, although there was a minimum amount for each claim. In 2003, the government said it had become clear that the EU would not introduce a reduced rate and the LPWGS was renewed. The scheme has been subject to several changes over the years, with the scope and level of funding available being varied over time. Further information on these changes can be found in the government’s evaluation of the scheme.^[20]

2.3 Evaluation of the listed places of worship grant scheme

In January 2026, the government published its evaluation of the LPWGS.^[21] The evaluation considered the scheme in relation to a number of themes, including its reach, effectiveness, additionality, proportionality and appropriateness as well as value for money with a focus on the last 10 years where data was available.

The government said that overall, the scheme appeared to have been effective in meeting its key policy objectives.^[22] Its administrative and application processes were also found to be effective and well regarded. The scheme was also found to have generated additionality and appeared to be proportional and appropriate, although the government said that “awareness and penetration could have been higher”. Focusing on value for money, the evaluation found that:

Overall, it has been found to fulfil the key requirements of economy, efficiency, effectiveness, and equity, though with some deadweight and some issues with equitable access by region, suggesting overall value for money.^[23]

However, the government found that the majority (80%) of beneficiaries would have carried out the supported works without the benefit of the scheme.^[24] Although it also acknowledged that the scheme had increased the timeliness of repair for 51% of users and enabled 31% to carry out works to a higher standard than they would have been able to otherwise. In answer to a written parliamentary question, the government highlighted these findings and said the new ‘Places of worship renewal fund’ had adopted “a more targeted approach to those places that most need support”.^[25]

Further details of the evaluation’s findings in each of the areas outlined above can be found in section 6 of the report.^[26]

2.4 Commentary on the change

Following the government’s announcement about the replacement of the LPWGS with the PWRF, various stakeholders have commented on the change. For example, Emily Gee, the Church of England’s director for cathedral and church buildings, welcomed the PWRF and “the certainty of this investment in repairs and improvements for eligible parish and cathedral church buildings.^[27] However, she also raised concerns about the closure of the LPWGS, stating it would lead to “added pressure on local fundraisers and inevitably a drain on other sources of funding”.

Similarly, Ben Sims, the National Churches Trust head of policy, welcomed the news of new capital funding but said he wanted to see it operate alongside the VAT fund.^[28] The trust also argued that the PWRF has two problems it must address: awareness and geographic extent.^[29] The charity argued that the previous scheme ran for over 20 years with limited awareness. It therefore called on the Department for Culture, Media and Sport to work with Christian denominations and heritage organisations and to run its own campaign to advertise the fund. The trust also raised concerns about the fund being for England only. It argued that the while the take up of the previous scheme was lower in the devolved nations, “it still provided a huge amount of support to buildings there” and that the lack of any replacement was “extremely disappointing”.

The Church of Scotland has also raised concerns about the extent of the new scheme, stating that the change had been unexpected and would impact on current projects.^[30] It argued that the LPWGS had been “vital over many years” and its absence would “add further burdens on the future”. The church was also critical of the government’s communication regarding the changes stating it had received no advance notice and that the Scottish government had indicated that they were also unaware of the change.

2.5 Other funding sources

A variety of organisations also provide funding for places of worship across the UK. For example, the National Lottery Heritage Fund provides grants for individual places of worship, stating it has awarded £1.1bn to 8,300 places of worship across the UK since 1994.^[31] Its approach to supporting historic places of worship is set out in its ‘Heritage 2033 strategy’, with grants of £10,000 to £10mn available through the heritage grants programme. The National Churches Trust, the Architectural Heritage Fund and Garfield Weston Foundation are other examples of organisations which also offer funding for places of worship.^[32] Further information on sources of funding, including in Wales, Scotland and Northern Ireland specifically, has been set out in the House of Commons Library’s briefing ‘Funding for places of worship’ (20 May 2026).

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