Faith communities generate £250m annually for Welsh economy – report

Faith communities across Wales are delivering social motion value not less than £250m a 12 months while playing a significant role in addressing poverty, loneliness and mental health pressures, based on a significant recent study.

The 2025 Faith in Wales report, published by Evangelical Alliance Wales, provides the primary comprehensive update in 17 years on the social, economic and civic contribution churches and other faith groups make to Welsh society.

It is structured around three central themes: public service, economic value and native resilience. The earlier 2008 study was described on the time as “groundbreaking”.

In the foreword to the brand new edition, Rev Canon Tim Rowlands, head of Evangelical Alliance Wales, said the unique report “identified and acknowledged the numerous contribution made by faith communities to life in Wales, and provided a basis for further co-operation between faith communities and policymakers.”

He noted that the 2008 research “remains to be often quoted today, despite its publishing date.”

The latest report, which surveyed 201 faith communities across Wales in early 2025, is meant to deal with a “gap” within the statistical data.

The authors state within the report’s introduction that faith communities “make up a crucial a part of the historical, social and economic fabric of Wales,” providing not only places of worship but additionally spaces that “combat poverty, tackle loneliness and strengthen social cohesion.”

The report also goals to “develop a current understanding of the role that faith communities play in Welsh society, demonstrating the large contribution they make, and the even greater impact they might have in the longer term.”

The study finds that 97% of religion groups run not less than one community-focused initiative. These include foodbanks, debt advice services, youth work, family support, mental health initiatives and outreach to the homeless and refugees.

More than half (52%) are involved in food provision, while nearly a 3rd (29%) provide support for people experiencing homelessness.

Faith groups are also heavily engaged in relational care – supporting families in crisis, running lunch clubs for older people, offering pastoral support and creating spaces of belonging.

The report highlights the growing importance of this work as NHS Wales allocates over £1 billion annually to mental health care.

It notes that faith participation is linked to improved wellbeing and resilience, with churches often acting as an early point of contact for those struggling.

Sites of worship are described because the “heartbeat of local communities,” functioning as civic hubs in addition to centres of religion.

Over three quarters (77%) of surveyed communities hold ownership of their worship spaces, 89% offer facilities accessible to individuals with disabilities, and greater than 50% offer free or discounted space for community groups and public bodies.

Just over 1 / 4 (26%) operate from buildings with listed or conservation status, underlining each their historic significance and the financial pressures involved in maintaining them.

According to the report, faith groups now generate a minimum of £250m annually for Wales – up 49% in real terms compared with 2008.

This total includes an estimated £115.1 million generated through volunteer hours, £79.2 million paid out in staff salaries, £17.6 million represented by the supply of free community space, and an extra £38.6 million through discounted rental of premises for community use.

The volunteer-driven value saves the general public purse significant resources.

The figure exceeds the Welsh Government’s £159 million social justice budget and doesn’t include potential tourism spending.

The conclusion describes the findings as “a statistically grounded understanding of the historical, social and economic impact that faith communities have throughout Wales.”

It states that the research demonstrates how faith groups give through “voluntary hours, paid staff and meeting spaces each totally free and at a lower than market value rate.”

The study also highlights strong civic participation and notes rising ethnic diversity inside Welsh churches, especially in urban areas comparable to Swansea, Cardiff and Newport.

More than one in five (21%) faith communities participate in government consultations, while 34% sit in on election hustings or have members serving in public office.

However, 39% of leaders say they would love deeper engagement with policymakers.

At the identical time, 77% of religion communities expressed a desire to launch recent initiatives – particularly in health-related support, including work with those facing long-term illness, addiction and mental health challenges.

The report identifies funding barriers as a big obstacle, citing complex application processes and difficulties accessing grants for faith-based organisations.

Rev Rowlands said the findings are “extremely encouraging for faith communities, demonstrating their continued necessary and positive contribution to society.”

But he added: “It also comprises a challenge regarding how faith communities may very well be higher supported in the superb work they do throughout Wales.”

The conclusion echoes that theme, arguing that “higher support from government and engagement with wider civil society will strengthen this further and together help improve life in Wales for all.”