Heat Pump vs Gas Boiler: Which Is Better for Your Home in 2026?

How Each System Works

A gas boiler burns natural gas to heat water, which circulates through radiators and a hot water cylinder (or directly via a combi). A heat pump extracts heat from the air (air source) or ground (ground source) and uses it to heat water at a lower temperature than a gas boiler. Heat pumps run on electricity rather than gas.

Installation Costs

A new combi gas boiler installation from Next Gen Boilers starts from £1,699 fully fitted with a 10-year warranty. An air source heat pump typically costs £8,000–£15,000 installed — though the Boiler Upgrade Scheme (BUS) currently offers a £7,500 government grant, reducing the cost significantly for eligible homes.

Running Costs in 2026

This is where it gets complicated. Heat pumps are more efficient in energy terms (typically 300–400% efficiency vs 90% for a gas boiler), but electricity costs significantly more per unit than gas in the UK. In 2026, the average electricity unit price is around 24p/kWh vs 6p/kWh for gas. A heat pump needs to be 3–4x more efficient than a gas boiler just to break even on running costs.

For well-insulated homes with underfloor heating, heat pumps can be cost-competitive. For older properties in Salford, Eccles and Irlam — typically Victorian or Edwardian terraces with standard radiators — a gas boiler almost always remains the more practical and cost-effective choice.

Is Your Home Suitable for a Heat Pump?

Heat pumps work best in: well-insulated homes (EPC C or above); properties with larger radiators or underfloor heating; homes with space for an outdoor unit (similar to an air conditioning condenser). Most older properties in Greater Manchester will require significant insulation upgrades before a heat pump performs effectively — adding further cost.

Our Honest Recommendation

For the vast majority of homes across Manchester, Salford, Eccles and Irlam, a new A-rated gas boiler remains the most practical, cost-effective and immediately available heating solution in 2026. Gas boilers are mature technology, well-understood, affordable and efficient. The infrastructure for widespread heat pump adoption in older urban housing stock is still developing.

If you are building a new well-insulated home or doing a comprehensive retrofit, a heat pump deserves serious consideration. For most existing properties, a new gas boiler makes more sense today.

Frequently Asked Questions