On 22 January 2026, the UK Government confirmed that the Listed Places of Worship Grant Scheme (LPWGS), which allows listed places of worship to reclaim VAT on eligible repair and maintenance works will permanently close on 31 March 2026, or earlier if the remaining annual budget is fully allocated.
The Government has announced that the scheme will be replaced by a new £92 million, four-year capital programme, known as the Places of Worship Renewal Fund. This new fund will be delivered by Historic England, apply to England only, and will focus on repair and conservation work to help safeguard historic places of worship for future generations.
The Renewal Fund will provide an average of £23 million per year, matching the final capped year of the LPWGS. From 1 April 2026, VAT on repairs to listed places of worship is expected to apply in full, unless further relief measures are introduced.
Alongside this announcement, the Government published an evaluation of the LPWGS, Evaluation of the Listed Places of Worship Grant Scheme which we, and many of you, contributed to by filling in a questionnaire last year.
The evaluation found that in 85% of cases, the scheme enabled essential repair and maintenance work that would not otherwise have taken place, at the same time, or in the same way, highlighting the scheme’s significant impact over its lifetime.
We will continue to monitor developments closely and share updates as further details about the Places of Worship Renewal Fund, including eligibility and application processes, as it becomes available.
