Is electric heating cheaper than gas UK?

No. At current prices, gas heating is significantly cheaper than direct electric heating. Gas costs around 7p per kWh while electricity costs around 24p per kWh — making direct electric heating roughly 3.4 times more expensive than gas. However, air source heat pumps (which run on electricity but are 300% efficient) can match or beat gas boiler running costs.

How much does it cost to heat a house with electric UK?

Heating a typical 3-bed home entirely with direct electric heaters costs roughly £2,400–£3,600 per year at current electricity prices. The same home heated by a gas boiler would cost around £700–£1,000 per year. With an air source heat pump, the cost would be £600–£1,000 per year due to the heat pump's high efficiency.

Are electric radiators cheaper to run than storage heaters?

Modern electric radiators and panel heaters give you more control (heat only when and where you need it), but they run at the full electricity rate. Storage heaters charge overnight on cheaper Economy 7 rates, which can be cheaper overall if you need consistent background heating. Which is cheaper depends on your tariff, how much heating you need, and when you need it.

Will gas boilers be banned UK?

New gas boilers will not be installed in new build homes from 2025 under the Future Homes Standard. For existing homes, there is no ban — you can still replace a gas boiler with another gas boiler. The government is encouraging a transition to heat pumps through grants like the Boiler Upgrade Scheme, but a compulsory phase-out for existing homes has not been legislated.

Electric vs Gas Heating Costs Compared UK

Gas has been the cheapest way to heat a UK home for decades, but the rise of heat pumps, smart tariffs, and energy efficiency improvements is changing the calculation. Here is how the options compare right now.

Running Cost Comparison

Heating type	Fuel cost per kWh	System efficiency	Effective cost per kWh of heat	Annual cost (3-bed home, 12,000 kWh heat demand)
Gas boiler (modern condensing)	7p	90%	7.8p	£936
Oil boiler	6–8p	85%	7–9.4p	£840–£1,128
LPG boiler	8–10p	85%	9.4–11.8p	£1,128–£1,416
Air source heat pump	24p	300% (COP 3.0)	8p	£960
Ground source heat pump	24p	400% (COP 4.0)	6p	£720
Direct electric (panel heaters)	24p	100%	24p	£2,880
Storage heaters (Economy 7)	12p off-peak	100%	12p	~£1,440
Infrared panels	24p	100% (but heats differently)	24p (lower usage claimed)	£1,500–£2,400

Annual Heating Costs by Home Size

Gas Boiler vs Direct Electric vs Heat Pump

Home size	Heat demand (kWh)	Gas boiler	Direct electric	Air source heat pump
1-bed flat	5,000	£390	£1,200	£400
2-bed terraced	8,000	£625	£1,920	£640
3-bed semi	12,000	£936	£2,880	£960
4-bed detached	18,000	£1,404	£4,320	£1,440
5-bed detached	25,000	£1,950	£6,000	£2,000

Direct electric heating is 2.5–3.5× more expensive than gas or heat pumps.

Installation Costs

System	Installation cost	Lifespan	Annual maintenance
Gas boiler	£1,800–£4,500	12–15 years	£80–£150
Air source heat pump	£10,000–£18,000 (£7,500 BUS grant available)	20–25 years	£100–£200
Ground source heat pump	£15,000–£35,000 (£7,500 BUS grant available)	20–30 years	£100–£200
Electric panel heaters	£1,000–£3,000 (whole house)	15–20 years	None
Storage heaters	£2,000–£5,000 (whole house)	15–20 years	None
Infrared panels	£2,000–£5,000 (whole house)	20+ years	None

10-Year Total Cost Comparison (3-Bed Home)

System	Install cost	10-year running cost	10-year maintenance	10-year total
Gas boiler	£3,000	£9,360	£1,200	£13,560
Air source heat pump (after BUS grant)	£7,500	£9,600	£1,500	£18,600
Air source heat pump (no grant)	£15,000	£9,600	£1,500	£26,100
Direct electric heaters	£2,000	£28,800	£0	£30,800
Storage heaters (Economy 7)	£3,500	£14,400	£0	£17,900

Gas boilers have the lowest 10-year total cost. Heat pumps (with the BUS grant) are competitive for longer time horizons.

When Electric Heating Makes Sense

Situation	Why electric can work
Well-insulated new build flat	Low heat demand means the cost difference is small
Rarely-used rooms	Heating only when needed (no boiler idle losses)
Off-gas-grid property	Avoids expensive oil or LPG — heat pump ideal
Holiday let or second home	No boiler maintenance, no gas safety certificate needed
Supplementary heating	Top up a room cheaply with a panel heater
No space for a boiler or cylinder	Electric heaters need no external infrastructure
Solar panels + battery	Use free solar electricity for heating daytime

When Gas Heating Is Better

Situation	Why gas wins
On the gas grid	Gas is the cheapest fuel for heating
Older, less insulated home	High heat demand makes gas savings significant
Multiple bathrooms needing hot water	Combi or system boiler delivers hot water efficiently
Budget-constrained	Gas boiler is cheapest to install
Family home with high usage	Running costs matter more with high demand

Heat Pumps — The Middle Ground

Advantage	Explanation
Running costs similar to gas	COP of 3.0+ means 1 kWh of electricity produces 3 kWh of heat
Government grant available	BUS provides £7,500 towards installation
No gas needed	Works on electricity only
Lower carbon	Especially as the grid gets greener
Longer lifespan	20–25 years vs 12–15 for a gas boiler
Cooling in summer	Some models reverse to provide cooling

Disadvantage	Explanation
Higher upfront cost	Even with grant, more expensive than gas boiler
May need radiator upgrades	Heat pumps work at lower temperatures
Needs outdoor space	External unit required
Less effective in poorly insulated homes	Best with good insulation (EPC C or better)
Hot water needs a cylinder	No instant hot water like a combi boiler

Future of UK Home Heating

Development	Status
New build gas boiler ban	From 2025 — new homes must have low-carbon heating
Existing home gas boiler ban	No ban confirmed — government encourages switching
Boiler Upgrade Scheme	Extended to 2028 (£7,500 for heat pumps)
Clean Heat Market Mechanism	Requires boiler manufacturers to sell a proportion of heat pumps
Hydrogen for heating	Trials ongoing but unlikely to be widespread before 2035
Heat networks	Growing in new developments and urban areas
Electricity prices	Expected to fall relative to gas as renewables expand

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