Heat pumps in the UK — costs, grants, and performance (2026)
Heat pumps extract heat from the outdoor air (air source) or ground (ground source) and transfer it into your home, achieving efficiencies of 2.5–3.5× the electricity they consume. In 2026, the UK government is incentivising the switch from fossil fuel boilers via the Boiler Upgrade Scheme — a £7,500 grant paid directly to your MCS-certified installer.
The running cost question
The most common question is whether heat pumps are cheaper to run than gas boilers. At current Ofgem price cap rates (electricity 24.5p/kWh vs gas 6.24p/kWh), a heat pump with SCOP 2.8 costs ~8.75p per kWh of heat delivered. A modern gas boiler at 89% efficiency costs ~7p/kWh. The current gas-electricity price ratio makes heat pumps marginally more expensive to run for gas users — but significantly cheaper for oil (7.5p/kWh boiler efficiency ~85%, effective ~8.8p/kWh) and LPG users.
The Boiler Upgrade Scheme — how it works
The BUS grant is paid directly to your MCS-certified installer, who deducts it from your invoice. You cannot apply directly — your installer applies on your behalf. Eligibility conditions include: property is in England or Wales, the heating system being replaced is oil, gas, or electric (not a biomass system in most cases), and the property must have a valid EPC. The grant is £7,500 for both air source and ground source heat pumps.
This content is reviewed by James Thornton (MCS).