Grant rules checked against Ofgem on 15 October 2026
Air source heat pump vs gas boiler: which should you choose?
Published and last updated 15 October 2026
A gas boiler is cheaper to fit and heats water instantly, while an air source heat pump costs more upfront but runs on electricity, gets a £7,500 grant and produces far less carbon. Which works out better depends on your home's heat loss, your radiators and your energy tariff.
| Feature | Air source heat pump | Gas boiler |
|---|---|---|
| Fuel | Electricity | Mains gas |
| Government grant | £7,500 (£9,000 for eligible off-gas homes until 31 March 2027) | None through the Boiler Upgrade Scheme |
| VAT on installation | 0% until 31 March 2027 | Standard VAT applies |
| Hot water | Stored in a cylinder | Instant with a combi boiler |
| Flow temperature | Lower, so some radiators may be upsized | Higher |
| Carbon | Low-carbon heating | Burns fossil fuel |
| Annual service | Recommended | Required for safety and warranty |
Which costs less to install?
A gas boiler usually costs less to install, but the £7,500 grant and 0% VAT narrow the gap considerably.
Which costs less to run?
It depends on how efficiently the heat pump is designed and the price you pay for electricity compared with gas.
A heat pump delivers several units of heat for each unit of electricity, which offsets electricity costing more per kWh than gas; heat pump tariffs can lower costs further.
Air source heat pump running costs
Is there a grant for a new gas boiler?
No. The Boiler Upgrade Scheme only funds heat pumps and, in rural off-gas homes, biomass boilers, and the ECO4 scheme that sometimes funded boilers for low-income households closes on 31 December 2026.
Which homes suit a heat pump best?
Homes with reasonable insulation, outdoor space for the unit and room for a hot water cylinder suit a heat pump best.
Is my home suitable for a heat pump?
When might a gas boiler still make sense?
A gas boiler can still make sense where there's no space for a cylinder or outdoor unit, or where the heat loss survey shows the home would need extensive upgrades first.
Can you have both?
You can, but hybrid systems that pair a heat pump with a fossil fuel boiler aren't eligible for the Boiler Upgrade Scheme grant.
Frequently asked questions
Will gas boilers be banned?
There's no ban on existing gas boilers; you can keep and repair one.
Is a heat pump as warm as a gas boiler?
A correctly sized heat pump keeps a home just as warm, but it runs at lower temperatures for longer, so it feels like steady background warmth.
Do I need to remove my gas supply?
No, you can keep your gas connection, for example for a gas hob.