The Short Answer
For most UK homes in 2026, yes — but with one condition: the system has to be designed well and run on the right electricity tariff. Get those two things right and a heat pump is cheaper to run than a gas boiler, far cheaper than oil or LPG, and the upfront cost after the Boiler Upgrade Scheme grant is often comparable to a premium boiler replacement.
Get them wrong — an undersized system, high flow temperatures, a standard variable tariff — and a heat pump can cost more to run than the boiler it replaced. That single fact is why we survey properly before we quote. The technology is not the risk. The design is.
It All Comes Down to SCOP
SCOP (Seasonal Coefficient of Performance) is the number that decides whether a heat pump saves you money. It is the ratio of heat produced to electricity consumed across a whole heating season.
- A SCOP of 3.0 means 3 kWh of heat for every 1 kWh of electricity.
- At 3.5–4.0, a heat pump beats a gas boiler on running cost.
- The Boiler Upgrade Scheme requires a minimum SCOP of 2.8 to qualify.
SCOP is driven by flow temperature. Design for low flow temperatures (35–45°C) with correctly sized radiators or underfloor heating and you push SCOP up. Force a heat pump to run at 60°C through undersized radiators and efficiency collapses. This is the whole game — and it is engineering, not luck.
Real 2026 Running Costs
Take a typical three-bedroom semi with an annual heating demand of about 12,000 kWh:
- Gas boiler (90% efficient): roughly £780–£900 a year.
- Heat pump, standard tariff, SCOP 3.0: roughly £960–£1,100 — slightly more than gas.
- Heat pump on a smart heat-pump tariff (e.g. Cosy Octopus): roughly £400–£640 — clearly cheaper than gas.
The tariff is the swing factor. A dedicated heat-pump tariff with cheap off-peak windows blends your electricity rate down to around 17p/kWh, which is what turns the numbers decisively in your favour. Disconnecting from gas entirely also removes the gas standing charge — around £105 a year saved.
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The Grants That Change the Maths
Upfront cost is where the case is won for most people in 2026:
- Boiler Upgrade Scheme (BUS): £7,500 off an air source heat pump. Homes off the mains-gas grid (oil or LPG) replacing a fossil-fuel system can claim an enhanced £9,000 between 21 July 2026 and 31 March 2027.
- Warm Homes: Local Grant: for lower-income households or those with an EPC of D–G, up to £15,000 towards low-carbon heating — which can mean a fully funded installation.
- 0% VAT on the whole installation until 31 March 2027.
Stack the grant and zero VAT and a £12,000 installation can net down to around £4,500 — or lower off-grid.
When a Heat Pump Is NOT Worth It (Yet)
We would rather tell you honestly. A heat pump may not be the right move right now if:
- Your home is very poorly insulated with no appetite to improve it — the running-cost case weakens.
- You are moving within a year or two and will not see the payback.
- There is genuinely no suitable outdoor space for the unit.
In every one of those cases we will say so at the survey. What makes a heat pump worth it is not the box on the wall — it is a correct heat-loss survey, low flow-temperature design, the right cylinder, an appropriate tariff, and the grant applied properly. That is exactly what we do.
Frequently asked questions
On a standard tariff, a heat pump is roughly on a par with, or slightly above, gas. On a dedicated heat-pump smart tariff with cheap off-peak windows, it is clearly cheaper — often 15–20% below gas, and dramatically cheaper than oil or LPG. Good design (high SCOP) and the right tariff are what make the saving real.
A properly designed air source heat pump running at low flow temperatures should achieve a SCOP of 3.5 or higher. The Boiler Upgrade Scheme requires a minimum of 2.8. We design for the lowest practical flow temperature to keep SCOP — and your running costs — as favourable as possible.
The Boiler Upgrade Scheme gives £7,500 towards an air source heat pump. Homes off the mains-gas grid (heating with oil or LPG) that replace a fossil-fuel system can claim an enhanced £9,000 between 21 July 2026 and 31 March 2027. Installations also attract 0% VAT until 31 March 2027.
Most UK homes are. The best candidates have some insulation, a little outdoor space and currently use oil, LPG or electric heating (the biggest savings). Our survey gives you a clear yes or no — and if it is not right for your property, we will tell you.
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