On 22 January 2026, the government confirmed the end of the Listed Places of Worship Grant Scheme, which provides grants to cover VAT costs incurred during repairs to listed buildings in use as places of worship up to a cap of £25,000 per place of worship. The scheme will be replaced by a £92 million four-year-fund called the Places of Worship Renewal Fund.
This new fund differs from the previous scheme in several ways. Whilst the Listed Places of Worship scheme covered VAT costs, it is currently unclear whether VAT costs will be able to be claimed back from the scheme. From 1 April 2026, all repairs and maintenance that take place at any listed place of worship will be subject to the full VAT rate of 20%. In addition to this, the new funding will only be available for buildings in England whereas the previous scheme also supported Scotland, Wales and Northern Ireland.
The fund will also operate very differently. The Listed Places of Worship Grant Scheme was essentially a VAT reclaim scheme. Listed places of worship would simply need to submit their receipts online for repairs and maintenance that was carried out. The new fund will be run by Historic England and may operate as a standard grant scheme, with a formal application process and grant panel.
The funding works out as £23 million per year, which is the same as the 2025/26 budget but a decrease from the 2024/25 budget of £42 million. The budget has not been adjusted to keep up with inflation.
We expect additional details on the new scheme to emerge over the coming months and will keep you informed as developments arise.
No action is required by churches at this stage, unless a claim to the Listed Places of Worship Grant Scheme is planned. If so, this must be submitted before the deadline of 31 March 2026.
Click here to read the National Churches Trust analysis of the changes.
Click here to read the Governments Evaluation of the Listed Places of Worship Scheme.