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

At current UK prices, an efficient air source heat pump (SCOP 3.5–4.5) is broadly comparable to a gas boiler to run — often £100–£300 cheaper per year on a well-insulated home. The bigger cost difference is upfront, where the heat pump is pricier until the £7,500 grant is applied.

Is a heat pump or gas boiler cheaper over 10 years?

After the £7,500 Boiler Upgrade Scheme grant, a heat pump's running costs are typically lower than a gas boiler's, so over 10 years a heat pump usually works out cheaper on a well-insulated home. On a draughty home, or if you factor in a new gas boiler at a much lower install cost, the gap narrows significantly.

How much does a gas boiler cost vs a heat pump?

A new gas boiler typically costs £2,000–£3,500 fully installed for a 3-bed home. A heat pump costs £7,000–£12,000 before grant, or £3,500–£8,500 after the £7,500 grant. Once the grant is applied the upfront gap closes to roughly £1,500–£5,000.

Will gas boilers be banned?

There's no outright ban on installing gas boilers in the UK. The government's plans have softened, but future gas prices are expected to keep rising, and the £7,500 heat pump grant makes switching more attractive now.

What's the payback period for a heat pump vs a gas boiler?

On a well-insulated home, the after-grant heat pump price typically pays back through lower running costs in 7–10 years. A gas boiler has a much shorter payback on its smaller upfront cost, but higher running costs that add up over the long term.

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

At current UK prices, an efficient air source heat pump (SCOP 3.5–4.5) is broadly comparable to a gas boiler to run — often £100–£300 cheaper per year on a well-insulated home. The bigger cost difference is upfront, where the heat pump is pricier until the £7,500 grant is applied.

Is a heat pump or gas boiler cheaper over 10 years?

After the £7,500 Boiler Upgrade Scheme grant, a heat pump's running costs are typically lower than a gas boiler's, so over 10 years a heat pump usually works out cheaper on a well-insulated home. On a draughty home, or if you factor in a new gas boiler at a much lower install cost, the gap narrows significantly.

How much does a gas boiler cost vs a heat pump?

A new gas boiler typically costs £2,000–£3,500 fully installed for a 3-bed home. A heat pump costs £7,000–£12,000 before grant, or £3,500–£8,500 after the £7,500 grant. Once the grant is applied the upfront gap closes to roughly £1,500–£5,000.

Will gas boilers be banned?

There's no outright ban on installing gas boilers in the UK. The government's plans have softened, but future gas prices are expected to keep rising, and the £7,500 heat pump grant makes switching more attractive now.

What's the payback period for a heat pump vs a gas boiler?

On a well-insulated home, the after-grant heat pump price typically pays back through lower running costs in 7–10 years. A gas boiler has a much shorter payback on its smaller upfront cost, but higher running costs that add up over the long term.

Heat Pump vs Gas Boiler — Which Is Actually Cheaper in 2026?

The honest money answer: upfront cost, running cost, and the 10-year total — with the £7,500 grant on the table.

A heat pump is more expensive to install but cheaper to run. Upfront, a new gas boiler costs £2,000–£3,500, while a heat pump is £7,000–£12,000 — but the £7,500 grant drops the heat pump to £3,500–£8,500. Once running costs are counted over 10 years, a heat pump on a well-insulated home usually wins outright.

1. Upfront cost comparison

3-bed home, installed	Gas boiler	Heat pump
Unit + install	£2,000 – £3,500	£7,000 – £12,000
Grant available	—	£7,500 (BUS)
You pay	£2,000 – £3,500	£3,500 – £8,500

Heat pump figures assume a reasonably insulated home needing a hot water cylinder and standard radiator upgrades. Gas boiler price is a like-for-like A-rated combi swap.

2. Running cost & drawbacks

Two things make the heat pump pencil out: efficiency and the grant. But it isn’t automatic — here’s the honest picture.

❌ Heat pumps cost more to install — £3,500–£8,500 even after the grant, versus £2,000–£3,500 for a boiler.
❌ Draughty homes tip it the wrong way — insulation upgrades (often £2,000–£4,000) erode the advantage before any savings.
✅ Heat pumps run cheaper long-term — roughly £100–£300 less per year than a gas boiler on a well-insulated home.
✅ They’re also air conditioners — a reversible heat pump can cool in summer, which a gas boiler can’t.

3. Versus: 10-year total cost

Gas boiler, 10-yr total

£2,500 install + ~£9,000 running ≈ £11,500

Heat pump, 10-yr total

£6,000 avg after grant + ~£7,500 running ≈ £13,500

Indicative 2026 figures for a well-insulated 3-bed home. The heat pump catches and passes the boiler around year 7–10 on running-cost savings driven by rising gas prices and the grant already applied.

4. Who each is for

Pick a heat pump if…

Your home is insulated, you plan to stay 10+ years, you want cooling too, and you can use the £7,500 grant to slash the upfront cost. Long-term it’s the cheaper and greener choice.

Pick a gas boiler if…

You need the lowest upfront outlay, your home is very draughty and costly to insulate, or you plan to move within a few years. A boiler is simpler and far cheaper today, at the cost of higher running bills.

See the exact numbers for your home

Get free quotes from MCS-certified installers who model the running-cost comparison on their survey — with the £7,500 grant applied.

Before you pay a penny

You could be £7,500 better off

The government’s Boiler Upgrade Scheme gives every eligible homeowner £7,500 toward a new heat pump — paid straight to your installer, so it comes off your quote. No income means test and it covers most of the cost of a typical air source heat pump.

Check your grant eligibility →

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5. Verdict

On a well-insulated home you’ll keep for 10+ years, a heat pump wins on total cost once the £7,500 grant is applied. If you need the lowest upfront price, are selling soon, or can’t insulate, a gas boiler stays the cheaper today. The decision is less about brand and more about your home’s insulation and how long you plan to stay.

More on heat pumps

The 10 best heat pumps in the UK, compared →

How much does a heat pump cost? →

Heat pump running costs vs a gas boiler →

Heat pump installation cost →

£7,500 Boiler Upgrade Scheme grant →

Heat pump vs gas boiler FAQs

FAQ

Heat pump vs gas boiler cost frequently asked questions

Is a heat pump cheaper to run than a gas boiler?: At current UK prices, an efficient air source heat pump (SCOP 3.5–4.5) is broadly comparable to a gas boiler to run — often £100–£300 cheaper per year on a well-insulated home. The bigger cost difference is upfront, where the heat pump is pricier until the £7,500 grant is applied.
Is a heat pump or gas boiler cheaper over 10 years?: After the £7,500 Boiler Upgrade Scheme grant, a heat pump's running costs are typically lower than a gas boiler's, so over 10 years a heat pump usually works out cheaper on a well-insulated home. On a draughty home, or if you factor in a new gas boiler at a much lower install cost, the gap narrows significantly.
How much does a gas boiler cost vs a heat pump?: A new gas boiler typically costs £2,000–£3,500 fully installed for a 3-bed home. A heat pump costs £7,000–£12,000 before grant, or £3,500–£8,500 after the £7,500 grant. Once the grant is applied the upfront gap closes to roughly £1,500–£5,000.
Will gas boilers be banned?: There's no outright ban on installing gas boilers in the UK. The government's plans have softened, but future gas prices are expected to keep rising, and the £7,500 heat pump grant makes switching more attractive now.
What's the payback period for a heat pump vs a gas boiler?: On a well-insulated home, the after-grant heat pump price typically pays back through lower running costs in 7–10 years. A gas boiler has a much shorter payback on its smaller upfront cost, but higher running costs that add up over the long term.

Sources & cited data

Boiler Upgrade Scheme — GOV.UK / Energy Security & Net Zero — https://www.gov.uk/apply-boiler-upgrade-scheme
Air source heat pump running costs — Energy Saving Trust — https://energysavingtrust.org.uk/advice/air-source-heat-pumps/

Costs are 2026 guide figures combining Boiler Upgrade Scheme grant amounts, typical UK energy prices and installer pricing. Confirm with a written quote for your property.