Growth of English is directly related to downfall of religion

From Literary Theory pg. 20, Terry Eagleton writes

"If one were asked to provide a single explanation for the growth of English studies in the later nineteenth century, one could do no worse than reply: 'the failure of religion'."

This whole paragraph caught my attention the first time I read it because it is interesting to consider the replacing of the church, which was the cornerstone for human virtue, with Literature. He goes on to say that religion was a 'cement' for society, that it tied together groups of people while also serving as a passifying force, and that the failure of religion was regarded by the ruling class as a terrible thing.

So is Eagleton saying that the study of English, and Literature is able to replace some of the values or ideology that an individual would not have minus the church? This definitely supports the argument that Literature has a way of reaching an individual in the deepest parts of their minds, in a different way that unites people to almost a common human cause. It is not going to be a very strong argument to say that knowing Literature will make you a better person, but the benefits spread out over a society could have an improving effect.