He achieved prominence both as a theologian and reformer within British Methodism, stressing the importance of the church's engagement with the whole of society and human culture, and as an effective advocate for education within London.

His maternal grandfather John Scott (1792–1868) was a prominent Wesleyan Methodist, a founder and first Principal of Westminster Training College.

By the standards of 19th-century British Methodism, Lidgett's theology was liberal; he rejected the penal substitution doctrine of the atonement, and wanted to move his denomination away from its inherited tendency to a narrow evangelical stance, towards a social gospel.

Within the Church, Lidgett founded the modern Wesley Guild, a social organization aimed at young people but also offering activities to adults, which claimed over 150,000 members by 1900.

He was also an early supporter of the ecumenical movement and a key architect of British Methodist Union in 1932, and was the first President of the newly united church's conference.