The Budget just made heat pumps cheaper.
The gas standing charge is being scrapped and added to the price of every unit of gas instead.
The Ofgem capped rate, the same all day.
A heat pump could save you £205 a year
compared with gas after the Budget. That's about £17 a month off your heating bill.
Your gas bill today
£865
a year, about £72 a month
At the current price cap, standing charge included.
Your gas bill after the Budget
£865
a year, about £72 a month
Same as today.
A heat pump after the Budget
£661
a year, about £55 a month
On Standard variable (price cap).
Estimates only, not a quote. Based on a typical home, the Ofgem price cap and a forecast of the January 2027 cap. Your own bills depend on your home, how you use energy, your tariff and the final prices.
Geek Peek: See more technical details
Try a different heat pump
- Heat your home needs
- 8,075 kWh
- Electricity the heat pump uses
- 2,182 kWh
- Efficiency needed to beat gas
- SCOP 2.83
It was 3.23 before the Budget. Above it, a heat pump heats more cheaply than a 85% efficient boiler, on unit rates alone.
The prices behind it
| Rate | Today | After the Budget |
|---|---|---|
| Electricity | 26.32p/kWh | 30.28p/kWh |
| Electricity standing charge | 54.83p/day | 55.00p/day |
| Gas | 7.97p/kWh | 9.11p/kWh |
| Gas standing charge | 29.68p/day | 0.00p/day |
How we worked it out
The Budget
The gas standing charge is scrapped and recovered as 1.14p on every kWh of gas. A heat pump home that keeps its gas meter stops paying for gas it no longer heats with.
Standard variable (price cap)
A heat pump's electricity costs the flat capped rate. Based on how monitored homes use electricity, with no battery and no change to how the home runs.
Install prices
The median 2026 Zero Disrupt quote for each home size's cheapest SCOP 3.7 design, rounded down to the nearest £100, less the £7,500 Boiler Upgrade Scheme grant. Add-ons are extra.
Sources
Today: Ofgem price cap, 1 October to 31 December 2026. After the Budget: Electricity: Cornwall Insight Q1 2027 price cap forecast, 30 September 2026. Gas: held at today's cap plus the Budget's uplift, an assumption with the standing charge recovered across Ofgem's typical consumption. Rates include VAT as charged.
Why go through Heat Geek
Read the Heat Geek GuaranteeEfficiency you can hold us to
Your quote states the efficiency your system is designed to hit, and we guarantee it. The UK average is 280%; our designs run from 340% to 500%.
Watched every 15 minutes
Your heat pump reports its performance around the clock, and we verify it over a full year of real use.
£7,500 off, sorted for you
The government's Boiler Upgrade Scheme grant comes straight off your price.
Heat Geek installs for a medium home from
£6,600
after the £7,500 grant (£14,100 before). Add-ons are extra.