PowerGuide

Heat Pump vs Gas Boiler: Which Is Cheaper in 2026?

By Rob Hammond · Updated September 2026 · How we score

PowerGuide is reader-supported. We may earn a commission from links on this page. It never affects our rankings or what we recommend. Learn more

The two systems are closer than the headlines suggest. Here’s how they really compare in 2026.

Running cost: a small win at the cap, a bigger one on the right tariff

At the Ofgem cap for 1 October to 31 December 2026 (electricity 26.32p/kWh, gas 7.97p/kWh plus a 29.68p/day standing charge), a heat pump runs at about £742/year against £865 for a gas boiler, a saving of roughly £123.

The efficiency figure matters more than anything else here, and it is not the one on the datasheet. A SCOP of 3.6 or 4.0 is a laboratory number. The DESNZ-funded Electrification of Heat project monitored 428 air source heat pumps in real British homes and measured a median SPFH4 of 2.78 That is the figure the £742 uses. The full derivation, the interquartile range and what happens when VAT returns to electricity in April 2027 are in how much a heat pump costs.

Two things swing it. A bad install wipes the saving out: at the bottom quartile it is about £57 a year, and if you keep a gas hob and go on paying the gas standing charge you end up roughly £52 a year worse off. A dedicated heat-pump or off-peak tariff swings it the other way, and by more than any difference between units. Try the running cost calculator with your own figures.

Upfront cost: gas is cheaper, but the grant closes the gap

A new gas boiler is £2,000–£4,000. For the heat pump, use the scheme’s own records rather than installer marketing: Nesta’s analysis of four years of Boiler Upgrade Scheme data puts the median air source heat pump installation at £13,041 in 2025/26 in real terms, including the unit, installer fees and associated home upgrades. Take the £7,500 grant off that and the median lands at about £5,541, approximate because it subtracts a cash grant from an inflation-adjusted median. See how much a heat pump costs for the full breakdown and the off-gas £1,500 uplift.

So the gap is real: on those figures a grant-funded heat pump still costs roughly £1,500–£3,500 more than a new boiler, not “within touching distance”.

Comfort and carbon

  • Comfort: heat pumps give steady, even heat; some prefer it, and a good design avoids the “never warm enough” myth.
  • Carbon: a heat pump cuts heating emissions sharply versus gas, and improves further as the grid decarbonises.

When each wins

  • Heat pump: you can access a heat-pump tariff, plan to stay put, and want lower carbon, especially with the grant.
  • Gas boiler: lowest upfront cost and you’re not ready for the disruption of a changeover.

Ready to compare models? See our air source heat pumps and how much a heat pump costs.

FAQs

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

Marginally. At the October 2026 price cap, a median-performing heat pump (SPFH4 2.78, the measured median from the Electrification of Heat project, not a datasheet SCOP) runs at about £742/yr against £865 for gas, a saving of roughly £123. A bottom-quartile install that keeps a gas hob is about £52 a year worse off. On a dedicated heat-pump or off-peak tariff the heat pump is noticeably cheaper.

Will a heat pump keep my house as warm as gas?

Yes, when sized and designed properly. Heat pumps run at lower flow temperatures for longer, giving steady, even warmth rather than short, hot bursts.

Related products

Related guides