Gas vs Electric Heating Cost UK (2026)
Last updated 5 October 2026 · Prices based on the Ofgem price cap (October 2026 – December 2026)
Comparing heating costs by fuel price alone is misleading. What matters is the cost of each kWh of heat delivered to your rooms, which depends on the efficiency of the system. This page and calculator do that adjustment for you.
Gas vs electric vs heat pump heating cost
For 10,000 kWh of heat: gas boiler £906, heat pump £877, direct electric heaters £2,632 a year.
- Gas boiler
- £906
- Heat pump
- £877
- Electric heaters
- £2,632
- Gas p per kWh heat
- 9.06p
- Heat pump p per kWh
- 8.77p
- Electric p per kWh
- 26.32p
Cost per kWh of useful heat = fuel price ÷ efficiency (boiler) or ÷ SCOP (heat pump). Direct electric heaters are 100% efficient. Standing charges excluded.
Cost per kWh of heat at the current price cap
| System | Fuel price | Efficiency | Cost per kWh of heat | 10,000 kWh heat / year |
|---|---|---|---|---|
| Gas condensing boiler | 7.97p | 88% | 9.06p | £906 |
| Air source heat pump | 26.32p | SCOP 3 | 8.77p | £877 |
| Electric panel / fan heater | 26.32p | 100% | 26.32p | £2,632 |
| Storage heaters (off-peak ~15p) | 15p | ~90% | 16.67p | £1,667 |
What affects the cost
Boiler efficiency
Older non-condensing boilers can be 70% efficient or less.
Heat pump SCOP
A well-designed installation can reach SCOP 3.5–4; a poor one may be under 2.5.
Tariffs
Heat pump and EV tariffs can cut electricity rates substantially.
Standing charges
Going all-electric removes the gas standing charge (about £108 a year).
Heat demand
Insulation reduces demand whichever system you use.
How to reduce the cost
- Lower your boiler flow temperature to improve efficiency
- Get a heat loss survey before choosing a heat pump
- Avoid direct electric heating for whole-home heat
- Insulate first — every system benefits
- Check for heat pump time-of-use tariffs
Frequently asked questions
Is gas or electric heating cheaper in the UK?
Gas is cheaper than direct electric heating. A heat pump is roughly the same or slightly cheaper than gas at today's rates, depending on its efficiency.
Why is electricity so much more expensive than gas?
Wholesale costs, network costs and policy levies are higher per kWh for electricity.
Are electric radiators efficient?
They're 100% efficient at the point of use, but electricity costs over three times more than gas per kWh.
Will gas boilers be banned?
There is no ban on existing boilers. Government policy is to phase out new fossil fuel heating in new-build homes.
What is SCOP?
Seasonal Coefficient of Performance — the average heat output per unit of electricity over a whole year.
Sources and methodology
Energy prices come from the Ofgem price cap for Direct Debit customers (GB average). Installation costs are typical UK ranges from installer quotes and industry guidance, rounded. Savings use today's rates and do not predict future prices.