While dispensationalism emphasises God’s distinct dealings with Israel and the church, CT seeks to unify God’s relationship with humanity through overarching covenants. Understanding these differences is crucial, as the framework we adopt shapes how we read the Bible, how we understand what the church is, and how we anticipate the future. Our view of every area of the Bible is to some degree touched by our choice of framework; if we get the frame wrong, the pieces simply won’t fit!
Dispensationalism, when properly understood, views human history as unfolding through a series of distinct ages in which God deals with humanity under different conditions (see here). Whilst the circumstances change, certain foundational principles remain constant. For example, salvation has always been by grace through faith. A key feature of this framework is the distinction between Israel and the church. Israel is seen as a nation with particular earthly promises, while the church is a distinct work of God beginning in the New Testament and described as the body of Christ (Ephesians 1:22,23).
Covenant Theology, approaches the Bible differently. Rather than seeing clear distinctions between Israel and the church, CT tends to emphasise continuity between them. Within this framework the church is generally understood to be the continuation or fulfilment of Israel in the purposes of God. At the centre of the difference between these two systems lies the question of continuity between the Old and New Testaments. Dispensationalism recognises continuity in God’s character and principles but also acknowledges genuine changes in how God administers His purposes in history. Covenant Theology emphasises continuity to a much greater degree.
This discussion is not merely theoretical. The framework through which we read Scripture affects how we understand the church, Christian living and the future of the world. Questions such as the role of Old Testament law for Christians, the structure of church leadership, and expectations regarding the future kingdom of Christ, are all influenced by the interpretive framework we adopt.
The Purpose and Development of Covenant Theology
Covenant Theology seeks to unify the Bible through the concept of two overarching covenants. The first is the covenant of works, believed to have been established between God and Adam at creation. In this covenant Adam was promised life if he obeyed God perfectly, and death if he disobeyed. The second is the covenant of grace, which is understood to govern God’s dealings with humanity after the fall. Under this covenant God offers salvation to sinners through faith, ultimately in Christ.
The aim behind this structure is commendable. Covenant Theology seeks to highlight the grace of God as a central theme of Scripture and to demonstrate the unity of the biblical narrative. However, it is noteworthy that the fully developed system of Covenant Theology did not appear in the early centuries of the church. It began to emerge in the period following the Reformation and became formally articulated in seventeenth century confessions of faith.
This historical development does not in itself prove the system wrong, but it does caution against assuming that Covenant Theology represents the universally held position of the church throughout history.
The Structure of Covenant Theology
Most presentations of Covenant Theology include three covenants. In addition to the covenant of works and the covenant of grace, many theologians propose an eternal covenant of redemption made within the Godhead before creation. However, for practical interpretation the key covenants are the covenant of works and the covenant of grace.
The covenant of grace is understood to extend from the fall of Adam throughout the rest of human history. According to this view, God has been administering one overarching covenant relationship with humanity since Genesis 3. Some theologians believe it began immediately after the fall with the promise that the Seed of the woman would bruise the head of the serpent [the devil] (Genesis 3:15), while others associate its inauguration with the call of Abraham.
One difficulty with this structure is that the Bible itself does not explicitly describe such a covenant extending across the entire period of history. As a result, there is considerable disagreement among Covenant theologians regarding its participants, its conditions and its precise beginning.
Biblical Concerns with the Covenant Theology Framework
One concern with Covenant Theology is its starting point. By emphasising redemption as the central theme of Scripture, CT can unintentionally place humanity at the centre of the biblical story. Yet the Bible ultimately points beyond human salvation to the glory of God Himself. Paul writes that history will culminate in the moment when God is “all in all” (1 Corinthians 15:28). Salvation is certainly a glorious aspect of God’s work, but it exists within the larger purpose of displaying the glory of Christ.
A second difficulty arises from the structure imposed upon the biblical text. Covenant Theology requires a single overarching covenant extending from the fall until the end of history. However, Scripture itself records multiple covenants made at different times and with different parties. These include the covenant with Noah (Genesis 9:11-17), the covenant with Abraham (Genesis 15,17), the covenant made with Israel at Sinai (Exodus 19), the covenant with David (2 Samuel 7) and the promised new covenant described by Jeremiah (Jeremiah 31:31-34).
Each of these covenants has distinct features and purposes. Some involve the whole world, others focus on a particular family or nation. Attempting to compress these varied covenants into a single overarching structure risks flattening the diversity of God’s dealings in Scripture.
Israel and the Church
Perhaps the most significant issue concerns the relationship between Israel and the church. Covenant Theology typically views the church as the continuation or fulfilment of Israel. Yet the New Testament presents the church as something new.
In Matthew 16:18 the Lord Jesus speaks of the church in the future tense, saying, “I will build my church.” The church is later described as the body of Christ, joined to Him through the baptism in the Holy Spirit (1 Corinthians 12:13). This event began at the feast of Pentecost after Jesus’ death, resurrection and ascension (Acts 2), long after the period of the Old Testament.
Furthermore, the New Testament describes the church as a mystery that was not revealed in earlier ages but has now been made known through the apostles and prophets (Ephesians 3:5). If the church were simply a continuation of Israel, it would be difficult to explain how it could be described as something previously hidden.
Another important difference lies in the composition of these two groups. The nation of Israel consisted of a mixed multitude including both believers and unbelievers. Whilst it is possible for individuals who are not true believers to be unwittingly received into the fellowship of local churches, the church which is Christ’s body is a spiritual entity made up exclusively of those who have personally trusted in Christ (Ephesians 4:15,16).
The Mosaic Law and the New Covenant
Covenant Theology also tends to teach that the Mosaic law continues to guide Christian living. Yet the New Testament repeatedly states that believers are not under the law but under grace (Romans 6:14). Paul explains that the law served as a temporary tutor until the coming of Christ (Galatians 3:24).
Closely related to this issue is the nature of the new covenant. In Scripture the new covenant is described as genuinely new. The language used in the book of Hebrews emphasises both a new quality and a new era in God’s dealings with humanity (Hebrews 8-10). The new covenant brings fuller spiritual blessings and is contrasted sharply with the old covenant established at Sinai.
A Biblical View of the Covenants
Ironically, when the covenants recorded in Scripture are examined carefully, a dispensational reading of the Bible provides a coherent and thoroughly biblical understanding of them. The covenant with Noah assures the preservation of the earth. The covenant with Abraham promises a nation, a land and worldwide blessing. The covenant with David promises an everlasting King from his line. The new covenant promises forgiveness, inward renewal and a restored relationship with God.
Together these covenants move forward through history toward a climactic fulfilment in Christ. They reveal a God who unfolds His purposes progressively through time rather than administering one unchanging covenant structure across all ages.
Understanding these distinctions helps preserve the richness of biblical revelation and allows each covenant to speak in its own context. Just as with a jigsaw puzzle, once the framework is correctly established the pieces of Scripture begin to fall into place and the full picture of God’s purposes becomes clearer.
For a more comprehensive exploration of the topic, see Chapter 3 of the book, His Coming, titled “What is Covenant Theology?” by Iain Lewis, available from John Ritchies Bookstore.
