Committee publication · Correspondence · 9 September 2025
Letter from Baroness Twycross, Minister for Gambling and Heritage, regarding the Listed Places of Worship Grant Scheme, 4 September 2025
From: Culture, Media and Sport Committee
Inquiry: Protecting built heritage
Summary
Baroness Twycross responds to the Culture, Media and Sport Committee's inquiry on the Listed Places of Worship Grant Scheme. The scheme has been extended one year with £23 million funding. The government maintains a £25,000 annual cap per place of worship, rejecting the Committee's request to remove it, citing fiscal constraints. VAT relief for listed places of worship is not being reconsidered.
Key findings
- The Listed Places of Worship Grant Scheme has been extended for one year (until 31 March 2026) with a £23 million budget, supporting VAT costs for repairs and renovations.
- Government analysis shows 94% of previous applicants would fall within the new £25,000 annual cap, with most claims typically under £5,000.
- The government will not remove the £25,000 cap or increase the budget this financial year, citing inherited fiscal challenges and the need to support the maximum number of places of worship.
- Future permanence of the scheme beyond March 2026 will be considered in departmental business planning following the Spending Review, with no commitment made.
- The government rejects removing VAT on construction work for listed places of worship, citing VAT as a crucial revenue source forecast to raise £180 billion in 2025/26.
Tone
ProceduralTopics
Key actors
Baroness Twycross, Dame Caroline Dinenage MP, Culture, Media and Sport Committee, Bishop of Bristol, Salisbury Cathedral, St Michael le Belfrey York
Notable line
“… the cap allows us to provide support to the greatest number of our listed places of worship across the country.”
Key Quotes
“It is in recognition of this that the grant scheme, previously funded until March 2025, has been extended for one year with a £23 million budget.”
“… the decision to introduce a cap of £25,000 per place of worship was not taken lightly. It was a necessary measure taken to ensure the budget remains affordable, given the significant inherited fiscal challenges we face.”
“Departmental analysis indicates that the vast majority of applicants will not be affected by this change. Indeed, 94% of previous applicants would have fallen under this new cap, with most claims typically being for sums under £5,000.”
“Whilst all taxes are kept under review, the Government is not currently planning to change the VAT treatment of construction work, including alterations and repairs, on listed places of worship.”
Source · parliament.uk record ↗