Ofgem’s January 2026 price cap sets electricity at 24.5p/kWh and gas at 6.0p/kWh (Ofgem, January 2026). A typical 3-bedroom semi-detached home uses around 12,000 kWh of heat per year. This article compares the annual running costs of a gas boiler and a heat pump under these rates.
For a typical UK home in 2026, a heat pump costs roughly the same as a gas boiler annually. A gas boiler at 90% efficiency requires 13,333 kWh of gas input, costing £800. A heat pump with a Seasonal Coefficient of Performance (SCOP) of 3.5 requires 3,429 kWh of electricity input, costing £840. The difference is £40 per year.
A typical UK home now spends £X less per year heating with a heat pump than with a gas boiler
Using the January 2026 price cap figures, a typical 3-bedroom semi-detached home with an annual heat demand of 12,000 kWh faces these costs. A gas boiler operating at 90% efficiency consumes 13,333 kWh of gas. At 6.0p per kWh, this costs £800 per year (Energy Saving Trust, 2026).
A heat pump with a SCOP of 3.5 consumes 3,429 kWh of electricity. At 24.5p per kWh, this costs £840 per year. The heat pump costs £40 more per year. However, with a modern high-SCOP unit of 4.0 or above, the heat pump becomes cheaper. At SCOP 4.0, the electricity input drops to 3,000 kWh and the annual cost falls to £735, saving £65 compared to the gas boiler.
The 2026 energy price cap makes the comparison dramatically different from 2025
Ofgem’s January 2026 price cap sets electricity at 24.5p/kWh and gas at 6.0p/kWh (Ofgem, January 2026). The electricity-to-gas price ratio is now 4.1:1. This is down from 4.5:1 in early 2025, meaning electricity is relatively cheaper compared to gas than it was last year.
A heat pump with SCOP 3.5 has an effective cost per kWh of heat of 7.0p (24.5 divided by 3.5). A gas boiler at 90% efficiency has an effective cost per kWh of heat of 6.67p (6.0 divided by 0.9). The gap between these two figures is narrowing. Any SCOP above 3.7 makes the heat pump cheaper on a per-kWh basis (DESNZ, Q1 2026).
Quick numbers annual running cost comparison for a typical home
| Home type | Annual heat demand (kWh) | Gas boiler annual cost (£) | Heat pump annual cost at SCOP 3.5 (£) | Heat pump annual cost at SCOP 4.0 (£) |
|---|---|---|---|---|
| 2-bed flat | 6,000 | 400 | 420 | 368 |
| 3-bed semi | 12,000 | 800 | 840 | 735 |
| 4-bed detached | 18,000 | 1,200 | 1,260 | 1,103 |
| 5-bed detached (poor insulation) | 24,000 | 1,600 | 1,680 | 1,470 |
Heat demand figures are from the Energy Saving Trust (Energy Saving Trust, 2026). The typical SCOP of 3.5 is based on the MCS register average for air source heat pumps installed in 2025 (MCS, 2026).
Eligibility for grants and lower running costs depends on your home’s heat loss
The Boiler Upgrade Scheme (BUS) offers £7,500 for an air source heat pump installation. Eligibility requires a valid MCS-certified installer and a property with suitable insulation (GOV.UK, 2026). Homes with high heat loss, such as those with single-glazed windows or no cavity wall insulation, will require a larger and more expensive heat pump. These homes may achieve a lower SCOP, making running costs higher.
The relationship between heat loss and SCOP is direct. A well-insulated home allows the heat pump to run at lower flow temperatures, boosting SCOP. A poorly insulated home forces the system to run harder, reducing SCOP (Energy Saving Trust, 2026). Eligibility for the lowest electricity tariffs, such as Economy 7 or time-of-use tariffs, is not automatic for heat pump owners. You must check with your supplier.
How to confirm your installer is certified for grant eligibility
BUS grants require the installer to be MCS-certified and TrustMark-registered (GOV.UK, 2026). You can check the MCS register online at mcs.uk for the installer’s certificate number and expiry date. Gas Safe Register is irrelevant for heat pump installers. NICEIC or NAPIT certification may be needed for any electrical work connected to the installation.
Always request a written quote that includes the MCS certificate number and a projected SCOP for your home. The projected SCOP should be based on a heat loss calculation performed by the installer (MCS, 2026).
The direct answer for a typical UK home in 2026, a heat pump costs roughly the same as a gas boiler annually
For a 12,000 kWh per year home, a gas boiler costs £800 and a heat pump at SCOP 3.5 costs £840. The difference is £40. If the SCOP reaches 4.0, the heat pump costs £735, saving £65 per year. The key variable is the heat pump’s SCOP, which depends on installer quality, home insulation, and system design.
Top-quartile installations recorded on the MCS register in 2025 achieved a SCOP of 4.0 or above (MCS, 2026). This means a well-designed and well-installed system can already match or beat a gas boiler on running costs at current energy prices.
Why your home’s insulation level is the deciding factor for cost parity
A well-insulated home, with cavity wall insulation, 300mm loft insulation, and double glazing, will allow a heat pump to run at lower flow temperatures. This boosts the SCOP to 4.0 or above. A poorly insulated home, such as one with solid walls and single glazing, may achieve a SCOP of only 2.5 to 3.0 (Energy Saving Trust, 2026).
At SCOP 2.5, the heat pump cost for a 12,000 kWh home rises to £1,176. At SCOP 3.0, it rises to £980. Both figures are £250 to £460 more than the gas boiler cost of £800. The English Housing Survey 2025 shows that around 40% of homes still lack cavity wall insulation (DESNZ, 2025). Insulation improvements are the single most effective step to reduce heat pump running costs.
How to improve your home's insulation for heat pump suitability
Frequently Asked Questions
A typical 3-bedroom semi-detached home with 12,000 kWh heat demand spends £800 per year on gas at 6.0p/kWh, based on Ofgem's January 2026 price cap and 90% boiler efficiency.
A heat pump with SCOP 3.5 costs £840 per year for the same home, using 24.5p/kWh electricity. At SCOP 4.0, it drops to £735, per Energy Saving Trust figures.
At current rates, a heat pump costs £40 more per year than a gas boiler for a typical home. But with a SCOP of 4.0 or above, the heat pump becomes cheaper, saving £65.
Ofgem's January 2026 price cap gives a ratio of 4.1:1, down from 4.5:1 in early 2025, making electricity relatively cheaper compared to gas.
A SCOP above 3.7 makes the heat pump cheaper than a 90% efficient gas boiler at 2026 price cap rates, based on MCS efficiency standards.
