Is a heat pump worth it in 2026?

What does a heat pump cost to install?

Government Boiler Upgrade Scheme (BUS) statistics show the average air source heat pump installed under the scheme in October–December 2025 cost £13,431 for a typical 8.4kW unit (reported by Which?). After the £7,500 grant, that leaves a typical household paying just under £6,000.

Homes that are already 'heat-pump ready' – reasonably well insulated, with suitable radiators – can come in well below that. Homes needing new radiators, pipework or a hot water cylinder will pay more. Always compare at least two quotes.

The Boiler Upgrade Scheme grant explained

The BUS is open to homes in England and Wales. Your MCS-certified installer applies for the grant on your behalf and takes it off your bill. Current grants are:

• £7,500 off an air source (air-to-water) or ground source heat pump.
• £2,500 off an air-to-air heat pump.
• An extra £1,500 (so £9,000 in total) for air or ground source heat pumps in homes heated by oil or LPG with no mains gas connection, until 31 March 2027.
• You can't use it to replace an existing low-carbon system, for hybrid systems (heat pump plus boiler), or for most new builds and social housing.
• The heat pump must meet all of your home's heating and hot water needs.

Will it actually cut my bills?

A worked example, using Ofgem's typical gas use of 11,500 kWh a year and the October–December 2026 price cap (gas 7.97p/kWh, electricity 26.32p/kWh):

A modern gas boiler at around 88% efficiency turns that into about 10,100 kWh of useful heat, costing roughly £917 a year in gas plus a £108 standing charge. A heat pump with a seasonal efficiency (SCOP) of 3.0 would need about 3,370 kWh of electricity for the same heat.

On a standard price-cap electricity tariff that's about £888 – only around £30 a year cheaper. On a heat-pump-friendly time-of-use tariff averaging about 20p/kWh, it's about £675, saving around £240. A well-designed system with a SCOP of 3.5 on the same tariff costs about £580, and if you disconnect from gas entirely you also save the £108 gas standing charge – roughly £440 a year in total.

So the honest answer: on a standard tariff, running savings can be small. The big wins come from good design (high efficiency), the right tariff, and the grant reducing the upfront cost to something close to a new boiler for some homes.

When a heat pump makes most sense

• Your boiler is old or needs replacing soon anyway.
• You're off the gas grid and heat with oil or LPG (higher running savings and the extra £1,500 grant).
• Your home is reasonably well insulated, or you can improve insulation first.
• You're willing to switch to a heat-pump or time-of-use electricity tariff.
• You want to cut exposure to future gas price shocks.

Questions to ask installers

• Are you MCS certified, and will you apply for the BUS grant for me?
• What SCOP (seasonal efficiency) do you expect, and what flow temperature is it based on?
• Have you done a room-by-room heat loss calculation?
• Does the quote include radiators, cylinder, electrical work and commissioning?
• What warranties and aftercare are included?

How much is the Boiler Upgrade Scheme grant in 2026?

£7,500 off an air source or ground source heat pump in England and Wales, or £2,500 off an air-to-air heat pump. Homes heated by oil or LPG with no mains gas can get an extra £1,500 until 31 March 2027.

Do I apply for the Boiler Upgrade Scheme myself?

No. Your MCS-certified installer applies on your behalf and deducts the grant from your quote.

Is a heat pump cheaper to run than a gas boiler?

It depends on the system's efficiency and your tariff. At October 2026 price-cap rates, a typical home on a standard tariff might save only around £30 a year, while a well-designed system on a heat-pump tariff could save a few hundred pounds a year.

Can I get a heat pump grant in Scotland?

The Boiler Upgrade Scheme covers England and Wales. In Scotland, Home Energy Scotland offers its own grants and support.