New funding for church repairs and VAT changes

The Listed Places of Worship Grants Scheme has been a lifeline for historic churches – saving them 20 per cent on repair costs. But the future of the scheme is uncertain – and churches, chapels, meeting houses and cathedrals across the country will be paying up to a fifth more for repairs, like leaking roofs and crumbling towers. Some of them cannot afford to do these repairs anymore, putting heritage and church buildings across the country at risk of disrepair and closure. 

On the 22 January 2026, the UK Government confirmed the Listed Places of Worship Grant Scheme will end in March 2026. It will be replaced by a £230 million package to protect and preserve heritage buildings, including listed places of worship. The UK Government has also decided that a spending cap/limit of £25,000 will now apply for each grant, and that the overall budget of the scheme has been reduced by almost half.

The scheme offers tremendous value for money. For every £1 invested in a church building, £16 of social good is generated, for example food banks, warm spaces, clubs etc. The Trust strongly believes that the Grants scheme should be retained and made permanent – it’s vital to help these buildings stay open, serving local people, and it’s the poorest and most isolated who will suffer most if these buildings are forced to close. Churches depend overwhelmingly on volunteers so the new proposed scheme will need to be simple, accessible and predictable if it is to be a success. A major concern is that in future listed places of worship will have to bear the full cost of VAT on repairs. This brings to an end a system that has operated successfully for over 20 years. It means that in future local people will have to raise money not just to repair churches but to pay a 20% tax to the Government.”

 The Trust says “Museums and galleries offering free admission do not have to pay VAT on repairs, but in future churches will. We call on the Government to end this unfairness and not to expect local volunteers to pay these extra taxes.”

The Department of Culture, Media and Sport have now been given their budget for the next few years. It is now up to them to decide if they will fund the scheme. Please write to your MP to request that the Listed Places of Worship Scheme is made permanent – a template and more information can be found at https://www.nationalchurchestrust.org/impact/campaigns/save-listed-places-worship-grants-scheme as a final decision is expected very soon.

Over 13000 churches have benefitted from the scheme and have been supported in keeping their buildings windproof and watertight, safeguarding the future of some of our most important local heritage. We have 2 listed churches near us, Holy Saviour and Church of the Ascension in Bitterne Park. The scheme changes will also greatly affect old churches in small towns and villages.    

Unbelievably, there remains no VAT chargeable if a listed church is demolished.

Maria.