Heating Cost Calculator UK 2025
Calculate your annual home heating costs and compare gas boilers, heat pumps, oil, LPG and electric heating. Based on Ofgem October 2025 price cap rates of 5.58p/kWh for gas and 24.50p/kWh for electricity.
Your Heating Details
Heating Type Comparison: UK 2025 Annual Costs
| Heating System | Typical Annual Cost | Install Cost | Best For |
|---|---|---|---|
| Gas Boiler (condensing) | £800–£1,400 | £2,500–£4,500 | Homes on gas grid |
| Air Source Heat Pump | £700–£1,200 | £8,000–£15,000 | Well-insulated homes |
| Oil Boiler | £1,200–£2,000 | £2,000–£4,500 | Off-grid rural homes |
| LPG Boiler | £1,400–£2,200 | £2,000–£4,000 | Off-grid, no oil storage |
| Electric Storage Heaters | £1,500–£2,500 | £1,500–£4,000 | Flats, no gas supply |
Costs based on Ofgem Oct 2025 price cap. A typical 3-bed semi-detached home, heated 8 hours/day for 7 months. Install costs include supply and fitting by a Gas Safe or MCS-certified engineer.
Understanding the Ofgem Energy Price Cap
The Ofgem energy price cap is the single most important factor determining UK heating bills for the roughly 29 million households on standard variable tariffs. Introduced in January 2019, the cap limits the maximum rate per unit that energy suppliers can charge domestic customers. It is reviewed and set by Ofgem quarterly, with changes effective from January, April, July and October each year.
For the October 2025 quarter, the cap is set at 5.58p per kWh for gas and 24.50p per kWh for electricity, with standing charges of approximately 31p/day for gas and 61p/day for electricity. It is important to understand that the cap is not a cap on your total bill — it limits the unit rate, so heavier energy users will still pay more. A household that uses twice as much gas as average pays twice as much in bills, even though they pay the same rate per unit.
Energy suppliers can offer fixed tariffs that lock in a rate for 12–24 months. In periods when wholesale energy prices are high (as seen during the 2021–2023 energy crisis), fixed tariffs may be higher than the cap. In calmer markets, fixes may offer savings. Always compare the per-unit rate on any fixed deal against the current cap before committing.
Boiler Upgrade Scheme: £7,500 Toward a Heat Pump
The UK government's Boiler Upgrade Scheme (BUS) offers a grant of £7,500 off the cost of an air source heat pump and £7,500 off a ground source heat pump for eligible homes in England and Wales. To qualify, your home must have a valid EPC (Energy Performance Certificate) with no outstanding recommendations for loft or cavity wall insulation. The grant is paid directly to your MCS-certified installer, reducing the upfront cost. Applications are made by the installer on your behalf. As of 2025, the scheme has expanded capacity and waiting times have reduced significantly.
Smart Thermostats: Hive, Nest and tado
Smart thermostats can reduce heating bills by 10–25% by learning your habits, allowing remote control via smartphone, and using geofencing to reduce heating when you are not at home. Hive (British Gas) costs approximately £179 installed and integrates with Google Assistant and Amazon Alexa. Google Nest (around £219 installed) uses occupancy sensing and learns your schedule automatically. tado (from £169 for the starter kit) offers room-by-room control via smart TRVs, multiroom scheduling and an open window detection feature. Most smart thermostats pay back their cost within one to two heating seasons through energy savings.
Zone Heating: Only Heat the Rooms You Use
Zone heating — dividing your home into separately controlled heating zones — can deliver significant savings by only heating occupied spaces to comfortable temperatures. Thermostatic Radiator Valves (TRVs) on individual radiators allow you to set different temperatures for different rooms. Unused bedrooms, hallways and utility rooms can be kept at lower temperatures (12–15°C) without affecting comfort in living areas. Smart TRV systems from tado, Drayton Wiser or Honeywell Evohome allow precise digital control from a smartphone app and can save 15–25% on heating bills compared to a single-zone system.
Optimal Heating Temperatures
The World Health Organisation recommends a minimum indoor temperature of 18°C for healthy adults in living areas, and 16°C for sleeping areas. The Energy Saving Trust's recommended settings are 18–21°C for main living rooms and 16–18°C for bedrooms and less-used rooms. Every 1°C reduction in thermostat setting saves approximately 3–4% on your heating bill — around £30–£50 per degree per year for a typical home. Turning heating down by 2°C while improving draughtproofing and using curtains effectively can save £100–£180 per year without noticeable comfort loss.
ECO4 Scheme: Free Energy Upgrades for Eligible Homes
The Energy Company Obligation 4 (ECO4) scheme, running to March 2026, provides free or heavily subsidised energy efficiency improvements to eligible households. Large energy suppliers (those with over 150,000 domestic customers) are legally obligated to fund these improvements as part of their licence conditions. Eligible measures include loft insulation, cavity wall insulation, solid wall insulation, heat pump installation and first-time central heating systems. To qualify, you must typically receive a qualifying benefit (Universal Credit, Pension Credit, Housing Benefit, Child Tax Credit, Working Tax Credit) or have a household income below £31,000. Your home must generally have an EPC rating of D, E, F or G. Contact your energy supplier or local council's Home Energy team to apply.
Draught Proofing: Low Cost, High Impact
Draught proofing is one of the most cost-effective energy efficiency improvements you can make. Cold air infiltration through gaps around windows, doors, floorboards and letterboxes can account for 15–25% of total heat loss in an older property. Professional draught proofing of windows and doors costs £150–£300; DIY using self-adhesive foam strips and door brush seals costs £50–£100. The Energy Saving Trust estimates savings of £45–£60 per year in a typical semi-detached house after draughtproofing doors and windows alone. Adding chimney balloons (around £25) to unused open fireplaces can save a further £90–£120 per year by blocking a major heat loss channel.
Radiator Efficiency Tips
Your existing radiators can deliver better performance with minimal cost through several simple measures. Bleeding radiators to remove trapped air — a process taking five minutes per radiator — ensures even heat distribution and prevents cold spots at the top of the radiator. Reflective radiator panels installed behind radiators on external walls reflect heat back into the room rather than warming the outside wall, improving efficiency by 10–15% at a cost of £5–£15 per panel. Ensuring radiators are not blocked by furniture or covered by curtains — particularly long curtains that hang in front of radiators — is essential for effective heat circulation. Fitting a magnetic boiler filter (such as a Magna Clean) traps iron oxide sludge that reduces radiator efficiency and boiler longevity, with installation costing £80–£150 and typically saving 6–10% on boiler fuel use.
Mustafa Bilgic — UK Home Energy and Heating Specialist
Mustafa covers UK home energy costs, heating system comparisons and government energy grant schemes for UK Calculator. All figures reflect Ofgem October 2025 price cap rates and current UK market data. This calculator provides estimates — actual costs depend on your energy tariff, property and usage habits.
Frequently Asked Questions
What is the average gas heating bill in the UK in 2025?
The average UK gas heating bill in 2025 ranges from £800 to £1,400 per year for a gas boiler, depending on property size, insulation and usage. A typical 3-bed semi-detached with average insulation heated 8 hours/day for 7 months at the Ofgem cap rate of 5.58p/kWh costs approximately £1,000–£1,200 per year. Well-insulated modern homes pay considerably less.
How does a heat pump compare to a gas boiler for running costs?
An air source heat pump typically costs £700–£1,200 per year to run vs £800–£1,400 for a gas boiler. Heat pumps use electricity with a COP of 2.5–3.5, producing 2.5–3.5 kWh heat per kWh electricity. Despite higher electricity unit rates (24.5p vs 5.58p for gas), the multiplying COP effect makes heat pumps competitive — especially in well-insulated homes. The Boiler Upgrade Scheme offers £7,500 toward installation.
What is the Ofgem energy price cap and how does it affect my heating bills?
The Ofgem price cap limits the maximum unit rate suppliers can charge on variable tariffs. From October 2025: gas 5.58p/kWh, electricity 24.50p/kWh, gas standing charge ~31p/day, electricity standing charge ~61p/day. The cap limits the rate, not your total bill — higher usage still means higher bills. Ofgem reviews the cap quarterly.
What temperature should I set my thermostat to save money?
Set living rooms to 18–21°C and bedrooms to 16°C. Each 1°C reduction saves approximately £30–£50 per year. Smart thermostats (Hive, Nest, tado) can reduce bills by 10–25% through scheduling, geofencing and occupancy sensing. Reducing your thermostat by 2°C combined with draughtproofing can save £100–£180 per year.
What is ECO4 and how do I qualify?
ECO4 (runs to March 2026) provides free energy improvements — insulation, heat pumps, first-time central heating — to low-income households with EPC ratings D–G. To qualify, you must receive qualifying benefits (Universal Credit, Pension Credit, Housing Benefit etc.) or have household income below £31,000. Apply via your energy supplier or local council.
How much can I save with draught proofing and radiator tips?
Draught proofing doors, windows and letterboxes saves £45–£60 per year (Energy Saving Trust) at a DIY cost of £50–£100. Adding chimney balloons saves £90–£120 more. Reflective radiator panels (£5–£15 each) improve heat output by 10–15%. Bleeding radiators and fitting a boiler magnetic filter save a further 6–10% on fuel. Combined, these measures can save £100–£200 per year.
Is oil or LPG heating more expensive than gas?
Yes. Oil heating costs £1,200–£2,000/year and LPG £1,400–£2,200/year for a typical 3-bed home, compared to £800–£1,400 for gas. Oil costs approximately 6–9p/kWh and LPG 7–11p/kWh — both more expensive than mains gas at 5.58p/kWh. Around 1.5 million off-grid UK homes use oil or LPG as their primary heating fuel.
How do electric storage heaters compare in running costs?
Electric storage heaters typically cost £1,500–£2,500/year to run — the most expensive common heating option. They use Economy 7/10 overnight electricity at 7–12p/kWh but rely on daytime release when electricity costs 25–35p/kWh. Modern high-heat-retention storage heaters are 27% more efficient than older models and may qualify for ECO4 funding in eligible homes.