Heating Cost Calculator (Gas & Electric)

Home Heating Guide

Gas vs Heat Pump Running Costs

Gas boilers burn gas and are approximately 90% efficient. Air source heat pumps move heat rather than generate it, achieving a COP (Coefficient of Performance) of 2.5–4.0 — meaning they deliver 2.5–4 units of heat per unit of electricity used. At current UK prices (gas ~5.5p per kWh, electricity ~25p per kWh), a heat pump with COP 3.0 is equivalent to gas at 8.3p per kWh. This makes heat pumps cheaper to run than gas in well-insulated homes in most of the UK — though the gap is narrow.

Improving Heating Efficiency

The order of heating efficiency improvements by cost-effectiveness: 1. Thermostat controls and smart thermostats (£100–300, saves 10–15%). 2. Draught proofing (£50–200, saves 15%). 3. Loft insulation (£300–600 if uninsulated, saves 25%). 4. Cavity wall insulation (£400–800, saves 15%). 5. Solid wall insulation (£5,000–15,000, saves 25–35%). 6. Double glazing (£4,000–10,000, saves 10–15%). Each measure works better in combination with the others.

Heat Pump Suitability

Heat pumps work best in well-insulated homes with underfloor heating or upgraded large radiators (they operate at lower flow temperatures than gas boilers — 40–55°C vs 70–80°C). They are less suited to poorly insulated older homes or those with small radiators. The Boiler Upgrade Scheme (2024) offers a £7,500 grant toward a heat pump installation. Running costs are not the only consideration — installation costs £8,000–20,000 compared to £2,500–4,000 for a new boiler.

Ofgem Energy Price Cap

UK residential energy prices are regulated by Ofgem's price cap, which sets maximum unit rates and standing charges each quarter. From Q1 2025, typical household bills target approximately £1,738 per year for a medium household. The price cap covers gas and electricity — gas standing charges of approximately 29.6p per day and electricity approximately 61p per day are included. Check the current rate at ofgem.gov.uk for the most accurate current figures.