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Heat pump vs gas boiler: which costs less?

With the £7,500 grant, a heat pump costs about £5,000 against roughly £2,300–£2,700 for a new boiler. Whether it pays back depends almost entirely on how efficiently it runs and what tariff you're on.

Upfront cost

Running costs at today's prices

A typical home using Ofgem's medium 9,500 kWh of gas a year, with a boiler around 88% efficient, needs about 8,360 kWh of heat. At the 1 October to 31 December 2026 cap (7.97p/kWh plus 29.68p a day standing charge), that gas costs about £865 a year. A heat pump's running cost depends on its seasonal efficiency (SCOP), which is how many units of heat it makes per unit of electricity:

SCOPElectricity usedHeat pump cost (at 26.32p)Gas cost (incl. standing charge)Yearly saving15-year position vs new boiler*
2.53,344 kWh£880£865−£15−£2,720
3.02,787 kWh£733£865+£132−£520
3.52,389 kWh£629£865+£237+£1,052
4.02,090 kWh£550£865+£315+£2,231

*15-year position = yearly saving × 15, minus the extra upfront cost of the heat pump after the grant (£5,000) over a mid-range boiler (£2,500). Assumes you drop gas completely, so the standing charge is saved. Constant prices, no maintenance differences. Indicative only.

Tariffs change the picture

The table uses the flat price cap electricity rate. Heat pump tariffs such as Cosy Octopus offer cheaper slots. If around 60% of your heat pump's use falls in the cheaper periods, the blended rate is about 24.4p/kWh, which cuts heat pump running costs a lot. Solar panels help too, mostly in spring and autumn. Run your own figures in the heat pump running cost calculator and compare tariffs in our smart tariff comparison.

Other things to weigh

FAQs

Is a heat pump cheaper to run than a gas boiler?

It depends on efficiency and tariff. At the current cap (26.32p electricity, 7.97p gas), a heat pump with a SCOP of about 3 or above, in a home that drops gas entirely, usually costs less to run. On a heat pump tariff the margin is bigger.

How much does a heat pump cost compared with a boiler?

Roughly £5,000 for an air source heat pump after the £7,500 grant, against about £2,300–£2,700 for a replacement gas boiler, though quotes vary widely.

What SCOP should I expect?

Well-designed UK installations commonly achieve a SCOP of about 3 to 4. Poor design, high flow temperatures and undersized radiators can push it below 2.5.

Do I need to replace my radiators?

Sometimes. Heat pumps run at lower flow temperatures, so a few rooms may need larger radiators. A proper heat loss survey will say which ones.

Related calculators

Heat pump running cost calculator

Boiler Upgrade Scheme FAQ

Boiler Upgrade Scheme checker

Standing charges explained

Sources

Estimates only, not financial advice. Results use average UK figures and the assumptions shown. Your real costs depend on your home, tariff, region and installer quotes. Always get several quotes from certified installers and check current tariff rates before deciding. Don't rely on these results alone: see our disclaimer.