Heat Pumps UK 2026

1. Absorb

The outdoor unit's fan pulls air over a coil of refrigerant. The refrigerant boils at very low temperatures, so it soaks up heat even on a freezing day.

2. Compress

An electric compressor squeezes that refrigerant gas. Compressing it pushes its temperature up high enough to heat your home.

3. Release

A heat exchanger passes the heat into your central heating water, which runs through radiators or underfloor heating at a gentler 35–55°C.

4. Hot water

The same system heats a hot water cylinder. The cooled refrigerant then expands and heads back outside to repeat the cycle.

Strong case: replacing oil or LPG

Oil and LPG are expensive fuels, and oil prices specifically have risen further following the 2026 Middle East conflict. A heat pump with a SCOP of 3.0 is already significantly cheaper to run, even before the £9,000 grant. The financial case is compelling: payback often under 10 years even without further energy price rises.

Decent case: replacing gas, switching tariff

At current prices, a well-specified heat pump on a standard tariff costs broadly the same to run as a gas boiler. Switch to a dedicated heat pump tariff like Octopus Cosy and it becomes cheaper. The £7,500 grant reduces upfront cost significantly, after grant, a 3-bed semi can cost similar to a replacement boiler. See our full head-to-head heat pump vs gas boiler comparison for the detailed numbers.

Weaker case: poorly insulated home

Heat pumps work best in well-insulated homes. Poor insulation forces the system to work harder, reducing efficiency and increasing running costs. Sort insulation first: cavity wall and loft insulation are cheap by comparison and dramatically improve heat pump performance. Even before that, two free changes to the system you already have, boiler flow temperature and tariff, are the start of our energy efficiency bundle.

What pushes costs up

• Radiator upgrades needed
• New hot water cylinder
• Poor existing insulation
• Complex installation
• Premium brands

What brings costs down

• £7,500–£9,000 BUS grant
• 0% VAT until March 2027
• Well-insulated property
• Existing suitable radiators
• Getting 3+ quotes

The main government grant for heat pumps. The grant is deducted directly from your installer's invoice: you never receive the money yourself and never need to pay the full amount upfront. There's nothing to apply for yourself: your MCS-certified installer applies for the grant on your behalf. Applications rose 81% in July 2026 alone, so it's worth getting quotes sooner rather than later.

Scottish homeowners can access the Home Energy Scotland Grant and Loan scheme, often more generous than the BUS. Includes an optional interest-free loan on top of the grant. Contact Home Energy Scotland on 0808 808 2282 for a personalised assessment.

VAT on qualifying heat pump installations is 0% until March 2027. No application needed: applied automatically by your installer. Stacks on top of the BUS grant.

The most common type in the UK. An outdoor unit extracts heat from the air, even in cold weather, and transfers it inside via a refrigerant circuit. Needs a small amount of outdoor space for the unit. Relatively straightforward to install and eligible for the full £7,500 BUS grant. Some models can also run in reverse to cool in summer. Not sure which make to pick? See heat pump brands compared.

Uses pipes buried in the ground (horizontal trenches or vertical boreholes) to extract heat. More efficient than air source, typically SCOP 4.0+, because ground temperature is more stable than air. Higher installation cost due to groundworks. Best for larger properties with outdoor space or those replacing oil/LPG. Costs £18,000–£35,000 before grant. More in our ground source heat pump guide.

Wall-mounted units that heat and cool individual rooms, the same technology as a split system air conditioner. Now eligible for a £2,500 BUS grant, though it doesn't provide central heating or hot water the way an air or ground source system does. Best as a supplement to existing heating or for homes without central heating systems. See our home air conditioning guide for how it compares with gas heating, and split system costs.

Do heat pumps work in cold UK winters?

Yes, modern air source heat pumps work efficiently down to -20°C. UK winters rarely drop below -10°C even in Scotland. Efficiency does reduce in very cold weather but the system continues to heat your home effectively. Proper sizing by your installer accounts for your local climate.

Do I need to upgrade my radiators?

Not always. Heat pumps work at lower flow temperatures than gas boilers (45–55°C vs 70–80°C), which means radiators need to be larger to deliver the same heat output. Many modern homes with oversized radiators are fine. A proper heat loss survey will identify whether upgrades are needed, typically 1–3 radiators in older homes.

Why did heat pump grant applications rise 81% this summer?

Rising oil prices following the 2026 Middle East conflict prompted the government to increase the oil/LPG BUS grant from £7,500 to £9,000 from 21 July 2026, triggering a surge in applications from affected households. See our full breakdown for the detail.

Can I get the BUS grant if I have a combi boiler?

Yes, the Boiler Upgrade Scheme applies to homes replacing fossil-fuel heating, including gas combi boilers, oil, LPG and electric heating. You must use an MCS-certified installer who will apply for the grant on your behalf.

How noisy are heat pumps?

Modern heat pumps are much quieter than older models, typically 40–50dB at 1 metre, similar to a quiet conversation or a refrigerator hum. Permitted development rules require the unit to produce no more than 42dB at 1 metre from a neighbour's window or door. Most quality installations comfortably meet this.

Do I need planning permission?

In most cases no: air source heat pumps fall under permitted development for houses in England, and since May 2025 they no longer need to sit at least a metre from your boundary. Exceptions include listed buildings, some conservation areas, and flats. Your installer will confirm before proceeding.

How long does it take to install a heat pump?

Most air source installs take 2–5 days, including fitting the outdoor unit, a hot water cylinder and any radiator swaps. You'll usually have hot water for most of that time. Ground source takes longer because of the trenches or boreholes. Your installer must commission the system within 120 days of applying for the Boiler Upgrade Scheme grant.

What is the best time of year to install a heat pump?

Spring and summer. You won't be without heating while the old boiler comes out, installers are less busy than in autumn and winter, and you can get used to the new system before the cold weather arrives. If you're replacing a failing boiler in winter, most installers can fit a temporary heat source.

Are heat pumps cheaper to run than electric heating?

Yes, by a long way. Electric heaters, storage heaters and electric boilers turn 1kWh of electricity into 1kWh of heat, about 26p at the October 2026 price cap. A heat pump with a SCOP of 3 delivers the same heat for about 9p. Electric heating also counts as a system you can replace with the Boiler Upgrade Scheme grant.

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