RetroFit Leeds
RetroFit Leeds
Heating

Heat Pump vs Gas Boiler: Costs, Savings, and Which Is Right for Your Home

12 min read20 March 2026

The big question

With the government pushing toward net zero and gas boiler sales set to be phased out for new installations from 2035, many homeowners in Leeds and West Yorkshire are asking: should I switch to a heat pump, or stick with gas?

The honest answer is that it depends on your home, your budget, and your priorities. This guide gives you a fair comparison to help you make an informed decision.

How they work

Gas boiler

Burns natural gas to heat water, which is pumped through your radiators and hot water cylinder. Gas boilers are straightforward, well-understood technology that most plumbers can install and maintain.

Heat pump

Uses electricity to extract heat from outside air (air source) or the ground (ground source) and transfer it into your home. A heat pump does not generate heat — it moves it, which is why it can produce 3 units of heat for every 1 unit of electricity used.

Installation costs

| System | Typical cost | After grants | |--------|-------------|--------------| | Gas boiler replacement | £2,500-£4,500 | No grant available | | Air source heat pump | £10,000-£16,000 | £2,500-£8,500 (after £7,500 BUS grant) | | Ground source heat pump | £15,000-£35,000 | £7,500-£27,500 (after £7,500 BUS grant) |

Heat pumps cost significantly more to install, even after the £7,500 Boiler Upgrade Scheme (BUS) grant. However, the gap narrows when you factor in that heat pumps last longer and have lower maintenance costs over their lifetime.

Running costs

This is where it gets interesting. Running costs depend on electricity and gas prices, which fluctuate, and on how well insulated your home is.

Typical annual heating costs (3-bedroom semi-detached, reasonable insulation)

| System | Efficiency | Estimated annual cost | |--------|-----------|----------------------| | Gas boiler (modern condensing) | 90-94% | £850-£1,100 | | Air source heat pump | 280-350% (COP 2.8-3.5) | £650-£950 | | Ground source heat pump | 350-450% (COP 3.5-4.5) | £500-£800 |

At current energy prices (gas around 7p/kWh, electricity around 24p/kWh), a well-performing heat pump is cheaper to run than a gas boiler in a well-insulated home. The heat pump's high efficiency more than compensates for the higher unit cost of electricity.

However, in a poorly insulated home, the heat pump has to work harder and its efficiency drops. In the worst cases, running costs can be similar to or even higher than gas. This is why insulation should always come first.

The Smart Export Guarantee

If you combine a heat pump with solar panels, you can generate much of the electricity your heat pump needs for free during summer months, and sell excess back to the grid. This can significantly reduce annual heating costs.

Grants available

For heat pumps

  • Boiler Upgrade Scheme (BUS) — £7,500 toward an air source or ground source heat pump. Your MCS-certified installer applies on your behalf. Available until at least March 2028.
  • ECO4 — may cover heat pump installation for eligible households (benefits-based or council flex route)
  • Warm Homes: Local Grant — expected to include heat pump funding when it launches in spring 2026
  • For gas boilers

    There are currently no government grants specifically for replacing a working gas boiler with another gas boiler. ECO4 can fund boiler replacement in some circumstances (broken boiler, first-time central heating), but the direction of policy is clearly away from gas.

    Environmental impact

    | Factor | Gas boiler | Heat pump | |--------|-----------|-----------| | Carbon emissions | 215g CO2/kWh of heat | 75-100g CO2/kWh of heat (grid average) | | Direction of travel | Stays the same | Gets cleaner as the grid decarbonises | | Fossil fuel use | Direct gas burning | None (runs on electricity) | | Refrigerant | None | Uses refrigerant (low GWP in modern units) |

    A heat pump produces roughly 50-65% less carbon than a gas boiler today, and this advantage grows every year as more renewable energy comes onto the electricity grid. By 2030, the carbon advantage is expected to be even larger.

    Which homes suit heat pumps?

    Heat pumps work in most homes, but they work best in:

  • Well-insulated properties — the better insulated, the more efficient the heat pump
  • Homes with space for the outdoor unit — you need a suitable external wall or ground area
  • Properties with room for a hot water cylinder — heat pumps need a cylinder, so if you currently have a combi boiler, you will need to find space for one
  • Homes with larger radiators or underfloor heating — heat pumps run at lower temperatures (35-55°C vs 60-80°C for gas boilers), so larger heat emitters work better
  • Properties that can be more challenging (but not impossible) include:

  • **Older stone terraces** with solid walls and limited insulation
  • **Small flats** with restricted outdoor space
  • **Listed buildings** where external changes are restricted
  • Many of these challenges can be overcome with proper planning. A good installer will carry out a detailed heat loss survey and design a system that works for your specific property.

    Common myths

    "Heat pumps don't work when it's cold"

    Modern air source heat pumps work efficiently down to -15°C or lower. West Yorkshire winters, while chilly, are well within their operating range. Scandinavian countries with much harsher winters use heat pumps widely.

    "Heat pumps are noisy"

    Modern units produce about 40-50 decibels at 1 metre — similar to a quiet conversation or a fridge. Planning rules require that noise levels do not exceed 42dB at the nearest neighbour's window.

    "You need underfloor heating"

    Underfloor heating is ideal but not essential. Many heat pump installations work perfectly well with correctly sized radiators. Your installer may recommend replacing some radiators with larger ones, but this is a relatively minor cost.

    "Heat pumps don't produce enough hot water"

    Heat pumps heat water to 50-55°C as standard, which is perfectly adequate. They can boost to 60°C+ for legionella protection. A well-sized hot water cylinder ensures you have enough hot water for your household.

    "It's better to wait for hydrogen"

    The government's hydrogen village trial was cancelled, and there is no confirmed plan for widespread hydrogen heating. Most industry experts now agree that heat pumps, not hydrogen, will be the primary replacement for gas boilers in homes. Waiting for hydrogen means continuing to pay high gas bills and missing out on available grants.

    Maintenance and lifespan

    | Factor | Gas boiler | Heat pump | |--------|-----------|-----------| | Expected lifespan | 10-15 years | 20-25 years | | Annual service cost | £80-£150 | £100-£200 | | Common repairs | Heat exchangers, valves, ignition | Compressor (rare), refrigerant (rare) | | Gas safety check | Required annually for landlords | Not applicable | | Breakdown frequency | Increases with age | Generally very reliable |

    Heat pumps have fewer moving parts than gas boilers and tend to be more reliable. The longer lifespan means that over 20 years, you are likely to need one heat pump versus two gas boilers.

    When to make the switch

    Consider switching to a heat pump now if:

  • Your current boiler is old, inefficient, or due for replacement
  • Your home is reasonably well insulated (or you are planning to insulate)
  • You want to take advantage of the £7,500 BUS grant while it is available
  • You want to reduce your carbon footprint and future-proof your heating
  • Consider sticking with gas for now if:

  • Your current boiler is relatively new and working well
  • Your home has very poor insulation and you cannot address that first
  • You genuinely cannot accommodate the outdoor unit or hot water cylinder
  • Even if you stick with gas for now, plan for a heat pump as your next heating system. Improve your insulation in the meantime so you are ready when the time comes.

    Summary comparison

    | Factor | Gas boiler | Heat pump | |--------|-----------|-----------| | Upfront cost | £2,500-£4,500 | £2,500-£8,500 (after grant) | | Annual running cost | £850-£1,100 | £500-£950 | | Carbon emissions | Higher | 50-65% lower | | Lifespan | 10-15 years | 20-25 years | | Government support | None for like-for-like | £7,500 BUS grant | | Future-proof | No (gas phase-out coming) | Yes | | Best for | Short-term budget, poorly insulated homes | Long-term savings, insulated homes |

    Finding an installer in West Yorkshire

    If you are considering a heat pump, always use an MCS-certified installer — this is required for the BUS grant and ensures quality. For gas boilers, look for Gas Safe registered engineers.

    Browse our directory to find certified heat pump installers and heating engineers in the Leeds and West Yorkshire area. Get at least three quotes, and make sure the installer carries out a proper heat loss survey before recommending a system size.

    Ready to Take the Next Step?

    Browse our directory to find trusted local providers, or get free quotes from vetted installers in West Yorkshire.