Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what fiscal support is available to (a) churches and (b) faith-based charities facing (i) increased energy costs and (ii) a decline in donations.

The Government recognises the importance of supporting churches and other listed places of worship.

Through the National Lottery Heritage fund, churches have access to grants ranging from £10,000 to £10million to support repair work for listed buildings and address issues around workforce and volunteer capability to manage heritage. Alongside this, the Government has extended the Listed Places of Worship Grant Scheme, with a budget of £23m until 31 March 2026, and this provides churches and other listed places of worship with grants of up to £25,000. This scheme will continue to enable religious organisations to claim grants covering eligible VAT costs paid towards repairs and renovations.

On support for increased energy costs, in the short-term, the Government wants to provide businesses with better protection from being locked into unfair and expensive energy contracts, and more redress when they have a complaint. Last year, the Government launched a consultation on introducing regulation of Third-Party Intermediaries (TPIs), such as energy brokers. This is aimed at enhancing consumer protections, particularly for non-domestic consumers. The consultation has now closed, and a Government response will follow in due course once all feedback has been reviewed.

From 19 December 2024 Small and Medium Enterprises (SMEs) with fewer than 50 employees can now access free support to resolve issues with their energy supplier through the Energy Ombudsman. This means that 99% of British businesses can now access this service with outcomes ranging up to £20,000 in financial awards

Charities may also, depending on their status, be able to benefit from buying their energy through Crown Commercial Service. Crown Commercial Service are a trading fund of Cabinet Office and their frameworks allow charities to benefit from the collective purchasing power of the UK public sector.

More broadly, within the tax system, we provide support to charities through a range of reliefs and exemptions, including reliefs for charitable giving, with more than £6 billion in charitable reliefs provided to charities, CASCs and their donors in 2023 to 2024.