Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact of the introduction of a cap of £25,000 on the amount of VAT that can be claimed back under the Listed Places of Worship Grant Scheme.

The Government recognises the importance of supporting churches and other listed places of worship. That is why the decision was made to extend the Listed Places of Worship Grant Scheme until 31 March 2026, with a budget of £23m.

Against a tough fiscal picture, the difficult decision was taken by the Department for Culture, Media and Sport (DCMS) to implement an annual limit of £25,000 per individual place of worship for the coming year. The changes to the scheme were necessary given the significant pressures on other parts of the heritage and cultural sectors.

Based on DCMS’s analysis of previous data, 94% of applications will be unaffected by the change, as most claims are under £5,000.