The government has extended its free admissions policy to the People's History Museum, the National Football Museum, and 48 university museums and galleries. These museums will now be able to reclaim VAT paid on purchases and running costs, as long as entry to them is free.

Nick Mansfield, the director of the People's History Museum in Manchester, said: 'This is a huge help and we are confident that we will gain in donations what we lose in income from admissions.'

The People's History Museum's projected earnings from admissions for 2005-6 was £3,000 from an overall income of about £880,000. Mansfield added that the museum has been lobbying the Treasury for this change since 1998.

The extension of the scheme comes at a good time for the National Football Museum (NFM), Preston, which has faced financial difficulties and was in talks with National Museums Liverpool earlier this year about a possible merger. The scheme will save the museum about £70,000 a year.

Mark Bushell, the NFM's spokesman, said: 'We are delighted. This can only be beneficial, and will help us continue to drive the business forward. It puts the marker down for football heritage to be treated on the same level playing field as the other nationals.'

Bushell said the NFM was in discussions with the Department for Culture, Media and Sport about back-dating it to 2001. University museums also welcomed the extension.

Tristram Besterman, the director of the Manchester Museum and a member of the University Museums Group, said: 'We are very glad that this has been introduced. It means that public money, which previously went back to the Exchequer, can now be allocated to what it was intended for in the first place - making university museums more accessible to the public.

'It also brings the basis of funding for university museums more in line with local authority and directly funded museums.'

Nick Merriman, the curator of the Institute of Archaeology at University College London (UCL) and a member of the University Museums Group, described it as 'a great step forward'.

But, he said, a condition of the scheme requiring museums to be open free to the public for at least 30 hours a week means that only 48 out of some 300 university museums and collections are eligible.

'Because of teaching requirements, many university museums find it very difficult to open to the public for as much as 30 hours a week,' he said. 'None of the UCL museums are eligible.'

Judy Aitken, the policy officer for the Museums Association (MA), said: 'The extension of VAT refunds is welcome news and in keeping with the MA's strong support for encouraging free access to collections. But ministers must also recognise that this has implications for the museums involved, as it can increase other costs and demands on resources.'

Patrick Steel