South Northants MP Andrea Leadsom led a backbench debate this week designed to get local authorities to get the most out of their faith groups.
Mrs Leadsom said the work by faith-based volunteers in her constituency was an example to others, but warned local authorities around the UK they may be missing out on a valuable resource.
She argued councils do not allocate resources in order to manage their relationship with faith groups, and when they do, the red tape involved is often too much for faith based volunteers.
She also said that often councils assume faith-based volunteers will refuse to provide services to other faith groups or homosexuals.
She added: “All those suspicions are pretty much unfounded, but there is a tendency for local authorities to avoid dealing with faith groups.”