With the UK government pushing heat pumps as the future of home heating, many homeowners are asking the same question: is a heat pump actually cheaper than sticking with gas? The answer depends on your home, your tariff, and how the system is set up. Here’s the honest comparison.
Annual Running Costs Compared
| Factor | Gas Boiler | Air Source Heat Pump |
|---|---|---|
| Fuel price (per kWh) | 7p (gas) | 28p (electricity) |
| System efficiency | 90–93% | 300–400% (COP 3.0–4.0) |
| Effective cost per kWh of heat | 7.5p | 7–9p |
| Annual heating cost (3-bed semi, 12,000kWh heat demand) | £900 – £1,100 | £840 – £1,200 |
| Annual hot water cost | £150 – £200 | £120 – £180 |
| Annual maintenance | £80 – £120 (service) | £100 – £200 (service) |
| Total annual cost | £1,130 – £1,420 | £1,060 – £1,580 |
Upfront Costs Compared
| Cost Item | Gas Boiler | Air Source Heat Pump |
|---|---|---|
| Equipment | £1,500 – £3,000 | £7,000 – £12,000 |
| Installation | £1,000 – £2,000 | £3,000 – £5,000 |
| Radiator upgrades | £0 | £0 – £2,000 |
| Hot water cylinder | £0 (combi) / £500 (system) | £500 – £1,000 (required) |
| Total before grants | £2,500 – £5,000 | £10,500 – £20,000 |
| BUS Grant | £0 | -£7,500 |
| Net cost to you | £2,500 – £5,000 | £3,000 – £12,500 |
15-Year Total Cost of Ownership
This is where the real picture emerges. Boilers typically last 12–15 years; heat pumps last 20–25 years.
| Scenario | Gas Boiler (15 years) | Heat Pump (15 years) | Saving |
|---|---|---|---|
| Well-insulated home + BUS grant | £22,200 | £20,400 | £1,800 saved with HP |
| Average home + BUS grant | £25,500 | £26,100 | Even |
| Poorly insulated home | £29,000 | £34,500 | £5,500 cheaper with gas |
| Well-insulated + heat pump tariff | £22,200 | £17,300 | £4,900 saved with HP |
When a Heat Pump Makes More Sense
✅ Choose a Heat Pump If:
- Your home has EPC rating C or better
- You have (or can add) underfloor heating
- You’re replacing an oil, LPG, or electric boiler
- You can access the £7,500 BUS grant
- You plan to stay 10+ years
- You can get a heat pump electricity tariff
- You want to future-proof (gas boiler ban from 2035)
⚠️ Stick with Gas If:
- Your home is poorly insulated (EPC D/E) and you can’t improve it
- You’re planning to move within 5 years
- Your current boiler is under 5 years old
- You have very limited outdoor space
- Budget is extremely tight (even after grant)
Heat Pump Electricity Tariffs
Several energy suppliers now offer dedicated heat pump tariffs with cheaper overnight rates, making heat pumps significantly cheaper to run:
| Supplier | Tariff | Off-Peak Rate | Peak Rate |
|---|---|---|---|
| Octopus Energy | Cosy Octopus | 12p/kWh (6hrs) | 32p/kWh |
| OVO Energy | Heat Pump Plus | 15p/kWh | 30p/kWh |
| EDF | GoElectric | 14p/kWh | 31p/kWh |
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What About the 2035 Gas Boiler Ban?
From 2035, no new gas boilers will be installed in UK homes (the exact policy is under review and may shift). This doesn’t mean existing boilers must be removed – you can keep repairing yours. But it does mean the gas boiler you buy today could be your last, and heat pump technology and pricing will only improve between now and then.
Frequently Asked Questions
Can I have a heat pump and keep my gas boiler?
Yes, this is called a hybrid system. The heat pump handles most heating, and the gas boiler kicks in during extreme cold snaps. Hybrid systems are eligible for a £5,000 BUS grant and can be a good stepping stone if your home isn’t perfectly insulated yet.
Will a heat pump reduce my energy bills?
It depends. If you’re replacing gas, savings are modest (0–20%). If you’re replacing oil, LPG, or direct electric, savings are substantial (20–50%). The biggest savings come from pairing a heat pump with solar panels and a battery.
Are heat pumps noisy?
Modern heat pumps produce 42–58dB – similar to a fridge or quiet conversation. They’re much quieter than older models and shouldn’t disturb you or your neighbours when properly installed with anti-vibration mounts.
Explore Heat Pumps
Read our complete heat pump guide for in-depth advice on installation, sizing, and costs.