Heat Pump vs Boiler - The Honest UK Guide for 2026

Your boiler needs replacing and you are weighing up a like-for-like swap vs making the jump to a heat pump. Here is a thorough, impartial breakdown covering costs, running costs, suitability and the verdict on when each option makes sense.

New Gas Boiler
Installation cost£2,000-4,500
Government grantNone
Annual running cost£800-1,300
Typical lifespan10-15 years
Carbon emissionsHigh
Best when: boiler has just broken, tight budget, short-term stay planned, property unsuitable for heat pump.
Air Source Heat Pump
Installation cost£10,000-18,000
After BUS grant£2,500-10,500
Annual running cost£700-1,200
Typical lifespan20-25 years
Carbon emissionsLow
Best when: staying long-term, eligible for BUS grant, oil or LPG currently, planning ahead for gas phase-out.

Full cost comparison

Gas boiler installation£2,000-4,500No grant available
Heat pump installation (air source)£10,000-18,000Before £7,500 BUS grant
Heat pump after BUS grant£2,500-10,500England and Wales only
Gas boiler annual running cost£800-1,300/yr3-bed semi, Ofgem Q1 2026 rates
Heat pump annual running cost£700-1,200/yrSCOP 3.5, same property
Gas boiler lifespan10-15 yearsWith annual servicing
Heat pump lifespan20-25 yearsGround loops 50+ years
Annual CO2: gas boiler~2,400 kg3-bed semi, 12,000 kWh demand
Annual CO2: heat pump~650 kgSame property, SCOP 3.5

When a new boiler still makes sense

Despite the BUS grant making heat pumps increasingly attractive, there are genuine scenarios where a new gas boiler is the right decision:

  • Boiler has broken in winter and you need heat immediately. A heat pump takes 4-8 weeks from survey to installation.
  • Planning to sell within 3 years. Payback periods of 8-15 years mean you may not recoup the cost difference at sale.
  • Property genuinely unsuitable - e.g. high-rise flat with no outdoor unit location, listed building with planning restrictions.
  • Budget is tight and the remaining post-grant cost (which could still be £5,000-10,000) is not manageable.

When a heat pump is the better long-term choice

  • You heat with oil or LPG. Running cost savings of £500-1,000/year make payback compelling, and there is no gas network to stay on.
  • You plan to stay 10+ years. The longer lifespan and running cost savings compound significantly over time.
  • You are adding solar PV. Solar panels and a heat pump is a powerful combination - your solar electricity directly powers the heat pump during daylight hours.
  • You want to future-proof. New gas boilers are being phased out for new builds. The direction of travel is clear.

Not sure which is right for you?

Use our running cost calculator with your own heating figures, or check BUS grant eligibility in under a minute.

Frequently asked questions

Important disclaimer

heatpumpcompared.co.uk is editorially independent and not affiliated with any heat pump manufacturer or installer. We do not provide heating advice. Prices, specifications, SCOP ratings and grant amounts are correct as of April 2026 but are subject to change. Always commission a professional heat loss survey before purchasing a heat pump system.