UK Heating Cost Index 2026: Heat Pump vs Gas Boiler Running Costs

Last updated: 11 June 2026. Updated every quarter when Ofgem revises the energy price cap. Figures below use the official cap unit rates and are fully adjustable in the calculator.

Key finding: Under the July–September 2026 price cap, heating a typical UK home costs about £968 a year with a gas boiler and about £933 with an air-source heat pump on a standard tariff, the first cap period in which the typical heat pump is cheaper to run than gas. On a dedicated heat-pump tariff or with a well-installed system the gap widens further.

Annual heating cost by system

Heating systemAnnual running costvs gas boiler

Gas boiler row includes the gas standing charge (heating is assumed to be the only gas use in an electrified comparison). Heat pump rows assume the home already has an electricity supply, so no extra standing charge is added. VAT included.

Methodology & sources

Running cost = annual heat demand ÷ system efficiency × unit rate. Default heat demand of 10,000 kWh/year approximates a typical UK 3-bed semi (Ofgem’s typical gas consumption of 11,500 kWh/year × 85% boiler efficiency ≈ 9,800 kWh of delivered heat). Unit rates are the Ofgem price cap averages for direct-debit customers in England, Scotland and Wales: April–June 2026: electricity 24.67p/kWh, gas 5.74p/kWh (typical bill £1,641). July–September 2026: electricity 26.11p/kWh (standing 57.19p/day), gas 7.33p/kWh (standing 29.04p/day; typical bill £1,862, a 13% rise driven by a 24% gas increase). Real-world heat pump SCOP of 2.8 reflects UK field trial medians; 3.5+ is achievable with good design. This page is updated within a week of each Ofgem cap announcement.

How to cite: “LookInto.co.uk UK Heating Cost Index, June 2026, analysis of Ofgem price cap unit rates” with a link to this page. Journalists: we can supply regional breakdowns on request, contact us.

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