If you’re thinking about changing your home’s heating system, you’ve probably wondered: “Which will cost me less money to run – an air source heat pump or a gas boiler?” It’s a brilliant question, and the answer might surprise you.
The Bottom Line: What Does It Cost?
Let’s start with the numbers that matter most – what you’ll pay each year to heat your home.
Gas Boiler Running Costs: A typical three-bedroom house will pay £853 per year to use a gas boiler at current prices. For gas boilers, annual running costs range between £620 and £1,260.
Air Source Heat Pump Running Costs: Air source heat pumps typically cost between £855 and £1,700 per year to run, with most estimates showing running costs between £830 and £1,600 to run per year.
So what does this mean? For most homes, the running costs are quite similar. A gas boiler might be slightly cheaper right now, but not by much – we’re talking about a difference of around £100-200 per year for an average home.
Why Heat Pumps Use Less Energy (But Still Cost About the Same)
Here’s where it gets interesting. Air source heat pumps are incredibly efficient. Heat pumps are 3 times more energy efficient than traditional gas boilers and consume around a third of the energy of a gas boiler for the same heat output.
Think of it like this: if a gas boiler needs 3 units of gas to heat your home, a heat pump only needs 1 unit of electricity to do the same job. That sounds like it should be much cheaper, right?
The catch is that electricity costs more than gas. Gas costs 6.33 pence per kWh whilst electricity costs 25.73 pence per kWh (1 July to 20 September 2025) – so electricity is about 4 times more expensive than gas per unit.
But here’s the clever bit: because heat pumps are 3 times more efficient, they use 3 times less energy. So even though electricity is 4 times more expensive, you’re only using a third as much. That’s why the running costs end up being quite similar.
How Air Source Heat Pumps Work
An air source heat pump works a bit like a fridge, but backwards. Instead of keeping things cold, it takes heat from the outside air (even when it’s cold outside) and moves it into your home.
Heat pumps can produce around 3 units of heat for every unit of electricity they use. This means they’re incredibly efficient at turning electricity into warmth for your home.
The amazing thing is that even in weather below freezing, there’s heat energy in the air and ground that heat pumps can use. Research shows that heat pumps are more than twice as efficient as fossil fuel heating in cold temperatures, and they also outperform oil and gas at temperatures approaching -30°C.
The Money-Saving Tricks
There are some clever ways to make heat pumps even cheaper to run:
Smart Electricity Tariffs: Based on current energy prices, heat pumps can save a typical gas household around £234 per year when they opt for smart electricity tariffs and remove the gas meter. Some energy companies offer special, cheaper rates for people with heat pumps.
Remove Your Gas Connection: If you switch to a heat pump, you might be able to remove your gas meter completely. This saves you around £105 per year in standing charges – money you pay just to be connected to gas, even if you don’t use much.
Better Insulation: Heat pumps work best in well-insulated homes. The better your insulation, the less your heat pump needs to work, which means lower bills.
What About Installation Costs?
This is where there’s a big difference. Installing a heat pump costs more upfront than replacing a gas boiler.
Air source heat pump costs for a 3–4 bedroom house in the UK range between £7,000 – £13,500, whilst a new gas combi boiler typically costs around £2,500 to £3,500 including installation.
But here’s the good news: the UK government offers grants of £7,500 towards the cost of installing a heat pump through the Boiler Upgrade Scheme. This can bring the cost down significantly.
The Long-Term Picture
Here are some things to think about for the future:
Gas Prices Are Rising: Gas prices tend to go up and down with world markets, and many experts think they’ll keep rising as the UK moves away from fossil fuels.
Electricity Is Getting Greener and Cheaper: As more renewable energy comes online, electricity should become cleaner and potentially cheaper.
Heat Pumps Last Longer: Air source heat pumps have an expected lifespan of between 15-20 years, whilst gas boilers typically last 10-15 years.
Which Should You Choose?
For most homes, the running costs between a modern gas boiler and an air source heat pump are quite similar. Your choice might depend on:
- If you want to reduce your carbon footprint: Heat pumps produce much less carbon dioxide
- If you want to future-proof your home: Heat pumps will become more attractive as gas prices rise
- If you can get the government grant: This makes heat pumps much more affordable upfront
- If your home is well-insulated: Heat pumps work best in efficient homes
Getting Expert Advice
Every home is different, and what works best for you depends on your specific situation. If you’re considering making the switch, it’s worth speaking to heating experts who can assess your home and give you personalised advice.
At Greener Homes, we specialise in helping families make the switch to more efficient, environmentally-friendly heating. Our team can help you understand which option would work best for your home and budget.
Learn more about heat pumps and our services: Heat Pump Installation Services
For more detailed information about how heat pumps work and government support available, visit the official UK government energy efficiency website.
The Final Word
Whilst gas boilers might be slightly cheaper to run right now, air source heat pumps offer similar running costs with much better efficiency and lower carbon emissions. With government grants available and energy prices changing, heat pumps are becoming an increasingly attractive option for UK homes.
The best choice for your home depends on your specific circumstances, but both options can keep your home warm and comfortable. The key is getting expert advice to help you make the right decision for your family and budget.
