Heat pump running costs depend mainly on seasonal efficiency (SCOP) and your electricity price: at the Ofgem price cap for October to December 2026, a heat pump with a SCOP of 3.0 produces heat for about 8.8p per kWh, compared with about 8.9p per kWh from a 90% efficient gas boiler.
Those figures assume a well-designed system and the GB average capped rates for Direct Debit. Insulation, flow temperature, controls and your tariff can move them either way, so this guide explains what drives the numbers and how to estimate your own.
How do heat pump running costs compare with a gas boiler?
The cost of a unit of heat is the fuel price divided by the efficiency of the system, which lets you compare a heat pump and a boiler directly.
The Ofgem price cap for October to December 2026 (GB average, Direct Debit) sets electricity at 26.32p per kWh and gas at 7.97p per kWh. A heat pump turns each kWh of electricity into several kWh of heat; a gas boiler turns each kWh of gas into slightly less than one kWh of heat.
| Heating system | Seasonal efficiency | Cost per kWh of heat, about |
|---|---|---|
| Heat pump | SCOP 3.0 | 8.8p |
| Heat pump | SCOP 3.5 | 7.5p |
| Heat pump | SCOP 4.0 | 6.6p |
| Gas boiler | 90% | 8.9p |
| Gas boiler | 85% | 9.4p |
The comparison turns on SCOP. Each step up in seasonal efficiency lowers the cost of every kWh of heat, which is why the design of the system matters more than the figures in a brochure. Boilers can also run below their rated efficiency in practice, so it is worth comparing against a realistic figure for your own boiler.
Do I still pay a gas standing charge with a heat pump?
If you replace gas heating with a heat pump and have the gas meter removed, you no longer pay the gas standing charge, which is 29.68p a day at the current cap, or about £108 a year.
That only applies if nothing else in the home uses gas, such as a gas hob or fire. You still pay the electricity standing charge, as you do now. Meter removal is arranged through your gas supplier once the new system is running.
What affects a heat pump's SCOP?
A heat pump's SCOP depends mainly on the flow temperature it runs at, which is set by the design of the whole system and the heat loss of your home.
- Flow temperature: the lower the water temperature needed to keep rooms warm, the higher the efficiency; systems typically run at around 35–50°C
- Design: a unit sized from a room-by-room heat loss calculation runs steadily, while an oversized one cycles on and off and an undersized one relies on backup heating
- Radiators and underfloor heating: larger emitters give out the same heat at a lower temperature
- Insulation and draughts: lower heat loss means less heat to supply and a lower flow temperature on cold days
- Controls: weather compensation and steady schedules keep flow temperatures as low as possible
- Hot water: heating the cylinder needs a higher temperature than heating rooms, so heavy hot water use lowers the yearly average
Your quote should include an estimated SCOP for your home. Treat it as an estimate, because how you set and use the controls also makes a difference.
Can a heat pump tariff lower my running costs?
Heat pump and time-of-use electricity tariffs from some suppliers can lower running costs further, by charging less for electricity at certain times or for the heat pump's own use.
A time-of-use tariff has cheaper periods, often overnight. A heat pump with a hot water cylinder can heat water during those periods, and some homes can warm the house ahead of a higher-priced peak. Whether this helps depends on your routine and the tariff's peak rate.
Tariffs change often and vary by supplier, so compare them against your own usage. Solar panels can also supply part of a heat pump's electricity in sunnier months. Our guide to heat pump tariffs and controls goes into more detail.
Worked example: how much electricity will a heat pump use?
To estimate a heat pump's electricity use, divide the heat your home needs in a year by the system's SCOP.
Take a home that needs 12,000 kWh of heat a year for heating and hot water. Your heat loss calculation gives this figure for your own home, or you can estimate it by multiplying your annual gas use by your boiler's efficiency.
| System | Fuel needed for 12,000 kWh of heat | Cost per kWh of heat, about |
|---|---|---|
| Heat pump, SCOP 3.0 | 4,000 kWh of electricity | 8.8p |
| Heat pump, SCOP 3.5 | About 3,430 kWh of electricity | 7.5p |
| Heat pump, SCOP 4.0 | 3,000 kWh of electricity | 6.6p |
| Gas boiler, 90% efficient | About 13,330 kWh of gas | 8.9p |
| Gas boiler, 85% efficient | About 14,120 kWh of gas | 9.4p |
To turn this into a yearly figure, multiply the kWh of electricity by your unit rate (the cap rate is 26.32p per kWh), or multiply 12,000 kWh by the cost per kWh of heat in the right-hand column. Then allow for standing charges, and use your own tariff if it differs from the cap.
The number that matters most is the SCOP your system actually achieves. In this example, moving from SCOP 3.0 to 4.0 takes electricity use from 4,000 kWh to 3,000 kWh, which is why design and flow temperature deserve as much attention as the unit itself.
How do running costs compare with oil or LPG?
Comparing a heat pump with oil or LPG heating works the same way, but those fuels are not covered by the Ofgem price cap and their prices move with the market.
Oil and LPG are bought by the delivery or under a supply contract, so there is no single reference price to quote here. To compare, take what you pay per litre, divide it by the energy in a litre (your supplier can tell you the kWh per litre), then by your boiler's efficiency, and set the result against the heat pump figures above.
Many oil and LPG homes are rural and off the gas grid, so removing a tank and fuel deliveries can be part of the decision too. In England and Wales, the Boiler Upgrade Scheme grant is £9,000 when a heat pump replaces oil or LPG heating, for installations from 21 July 2026 to 31 March 2027. Support in Scotland and Northern Ireland works differently; see our grants by nation guide.
Questions
Does a heat pump cost less to run than a gas boiler?
It depends mainly on the SCOP your system achieves and your electricity tariff. At the Ofgem cap for October to December 2026, heat from a heat pump costs about 8.8p per kWh at SCOP 3.0 and about 6.6p at SCOP 4.0, against about 8.9p from a 90% efficient gas boiler. Good insulation, low flow temperatures and a suitable tariff all help.
How much electricity does a heat pump use?
Divide the heat your home needs by the SCOP. A home needing 12,000 kWh of heat a year would use about 4,000 kWh of electricity at SCOP 3.0, or 3,000 kWh at SCOP 4.0. Your heat loss calculation gives the figure for your own home, and your quote should include an estimated SCOP.
Will my electricity bill go up with a heat pump?
Your electricity use goes up, because the heat pump runs on electricity, but your gas or oil bill falls or disappears. Compare the total cost of heat rather than one bill. If you have the gas meter removed, you also stop paying the gas standing charge, about £108 a year at the current cap.
Should I leave my heat pump on all the time?
Heat pumps usually run most efficiently when they heat steadily at a low flow temperature, rather than switching off and reheating from cold. Many systems are set to run continuously with weather compensation and modest set-backs at night. Your installer sets up the controls at commissioning and explains the settings that suit your home and tariff.
Sources
- Energy price cap – Ofgem
- Air source heat pumps – Energy Saving Trust
- Apply for the Boiler Upgrade Scheme – GOV.UK
Scheme figures and price cap rates checked October 2026.