On this day, the church celebrates all the dead that have been made 'Saints'.
The Church of England doesn't create saints itself but generally recognises those created by the Roman Catholic Church.
People who have died are 'canonised' by the Roman Catholic Church if they have led an exemplary life, or have been martyred because of their Christian beliefs
and have been credited with being responsible for a miracle, either before or after their death. This is the first step towards being made a 'saint'. If that person, either during their life or after they've died, is credited with being responsible for a second miracle, then the Roman Catholc Church decalres them to be a 'saint'.
These includes all the Apostles of Jesus (except Judas!), Mary his mother, many people who played a special part in the life of Jesus - such as john the Baptis -and a multitude of 'ordinary people' who have lived an 'exemplary' life since.
All Saints Day was originally celebrated in May, just after the festival of
Pentecost, but in the west around 735AD, Pope Gregory III dedicated an oratory* in Rome on 1st November 'for the relics of the holy apostles and of all saints, martyrs and confessors, of all the just made perfect who are at rest throughout the world'. As a result, the celebration of All Saints in the west was moved to November 1st, but in the Eastern Orthodox Churches it is still celebrated just after Pentecost.
November 1st is close to the old Irish pagan holiday of 'Samhain', when the dead were thought to revisit their old homes, and witches, goblins and black cats roamed about. Another name for All Saints is All Hallows, so the night before (October 31st) is known as 'All Hallows Eve', or more familiarly 'Halloween', which is how Halloween became associated with the old pagan ideas of the undead, witches and goblins, etc.
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*The word 'oratory' comes from the Latin 'orare' meaning to pray and is a place (often a building) set aside for prayer.
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