The Government has now formally launched the new Places of Worship Renewal Fund (PWRF), which replaces the former Listed Places of Worship Grant Scheme that enabled VAT to be reclaimed on eligible repair and maintenance works.
The new fund, administered by Historic England, will provide £92 million over four years (£23 million a year until 31 March 2030) to support urgent repairs and essential improvements to listed places of worship in England.
At £23 million per year, the new fund represents only half of the annual funding available under the pre-2024 Listed Places of Worship Grant Scheme.
Members should note that the new scheme does not replace the previous ability to reclaim VAT on eligible works. Since the closure of the Listed Places of Worship Grant Scheme on 31 March 2026, VAT now applies in full to most repair and maintenance projects unless alternative relief is introduced.
While the introduction of the Renewal Fund is welcome and demonstrates continued recognition of the importance of places of worship, significant concerns remain across the sector regarding:
• The reduced flexibility compared with the previous VAT reclaim scheme
• The competitive nature of the new funding programme
• The ongoing financial pressure on congregations and charities responsible for historic buildings
Key points of the new fund include:
• Grants available from £10,000 up to £1 million
• Open to listed places of worship of all faiths and denominations in England – where at least six services are held each year
• Funding aimed at urgent repairs and essential building improvements
• Priority given to projects in areas of highest deprivation and greatest community need
• Applications assessed competitively through an Expression of Interest process
• Funding streams divided into:
- Small grants: £10,000 – £50,000
- Medium grants: £50,001 – £350,000
- Large grants: £350,001 – £1 million
The fund is intended to support works that:
• Keep buildings safe and in active use
• Protect historic fabric and heritage
• Improve long-term sustainability and resilience
• Support churches and places of worship in their wider community role
We will continue to monitor developments closely, share guidance as further information becomes available and support ongoing efforts to encourage Government to reconsider the withdrawal of VAT relief for listed places of worship.
We would encourage all our members to contact their MP’s and ask them to support this campaign. A sample letter can be obtained from the office if required email secretary@norfolkchurchestrust.org.uk.
Further information on the fund and application process can be found via Historic England and the Government grants portal by following the links below.
Linda Joel
Trust Secretary
