Heat pump or new boiler?
A new gas boiler costs roughly £1,800 to £3,500 installed; an air source heat pump £8,000 to £14,000. But the £7,500 Boiler Upgrade Scheme grant (England and Wales) brings most heat pump installs to £500 to £6,500, with 0% VAT until 31 March 2027. The maths has genuinely changed.
The comparison, honestly
- New boiler: £1,800 to £3,500 installed, familiar, fast.
- Heat pump before grant: £8,000 to £14,000 installed.
- After the £7,500 grant: £500 to £6,500, comparable to a premium boiler.
- Off the gas grid and replacing oil or LPG, the grant is £9,000 until March 2027, which takes another £1,500 off those figures.
- An air-to-air heat pump, the type that also cools, is a separate category at £2,500.
- 0% VAT on installations until 31 March 2027.
Which grant applies to your house, who qualifies and what has closed is set out in the home energy grants guide, with the gov.uk source next to every figure.
Replacing like-for-like anyway? Price it in the boiler cost guide. Renovating the whole house is the natural heat pump moment: insulation, radiators and system design in one plan.
Want the answer for your own house instead of the general case? Run the two-question heat pump check with your gas use and insulation state; it computes both routes per year at current cap rates.
Frequently asked questions
Is my house suitable for a heat pump?
The honest test is insulation and radiator sizing, not age: a heat pump runs at lower temperatures, so poorly insulated homes or undersized radiators need upgrades first. A proper heat loss survey answers it; be wary of anyone quoting without one.
How do I get the Boiler Upgrade Scheme grant?
Through an MCS-certified installer, who applies on your behalf and deducts the grant from the quote. Conditions: England and Wales, you own the property, and you are replacing a fossil fuel system such as oil, gas, electric or LPG. The eligibility guidance sets no EPC rating condition and does not ask you to clear outstanding loft or cavity insulation recommendations first. The installer has to commission and install the heat pump within 120 days of applying, or the grant falls away.
What about running costs?
A well-designed heat pump delivers three or more units of heat per unit of electricity, which beats gas on efficiency but not always on price per kWh. The design quality decides it; a badly sized system disappoints in exactly the way the sceptics predict.