The law does not require a church to hold a Public Entertainment Licence for music staged as part of a service.

The law does require a church to hold a PEL for staging a public concert (free or otherwise), but will not charge the fee.

So a non profit-making session in a public house, is taxed with a fee.

And a profit making concert in a church, will not.

(Except in London, where they charge the fee.)