UK homes

On-gas vs off-gas heating:the geography, the economics, the future

About 84% of homes in Great Britain have mains gas; around 4.8 million do not, with the highest shares in Inner London, the South West and the East of England. Off the grid, heat pumps usually make clearer financial sense, helped by the £9,000 grant for oil and LPG homes until 31 March 2027.

Facts last checked 17 September 2026

The short answer

About 84% of homes in Great Britain have a mains gas meter; the other 16%, around 4.8 million homes in 2024, do not. The highest shares off the grid are in Inner London (27%), the South West (24%) and the East of England (20%). Off the grid, the economics of a heat pump are usually clearer than on it: heating oil and LPG have no price cap, direct electric heating costs almost three times as much per unit of heat as a typical heat pump, and eligible oil and LPG homes in England and Wales can get a £9,000 Boiler Upgrade Scheme grant until 31 March 2027. On the gas grid, a heat pump is close to level with gas at today's prices, so design quality and tariff decide it.

How many homes are off the gas grid, and where are they?

The government estimates this by subtracting the number of domestic gas meters from the number of homes in each area. That method counts any home without a gas meter as off-grid, including flats in a street that does have gas in the road. Its latest figures, published in December 2025, are for 2024.

Estimated domestic properties not connected to the gas grid, 2024 (DESNZ subnational estimates).
AreaHomes without mains gasShare of homes
Great Britain4.78 million16.1%
England3.98 million15.6%
Wales288,00019.5%
Scotland535,00019.5%
Inner London438,00026.6%
South West651,00024.2%
East of England576,00020.3%
Outer London324,00014.9%
North East96,0007.5%

The estimates do not say how off-gas homes are heated, and they cover very different places: rural areas beyond the reach of the gas network, and dense city districts with many flats that have no gas supply. At local authority level the range is wide: Cornwall is 47% off-gas and Tower Hamlets 48%, while Harrow is 12% and Ealing 19%.

Why do the economics change off the gas grid?

Mains gas and electricity prices for most households are limited by Ofgem's price cap. Heating oil and LPG are not: you buy them by the litre at whatever the market price is when your tank is filled. Government figures for standard grade burning oil, the kerosene used in domestic oil boilers, show how much that moves.

Typical retail price of heating oil (standard grade burning oil), mid-month, 2026 (DESNZ).
MonthPence per litre
March 2026104.1p
April 2026104.0p
May 202689.7p
June 202676.6p
July 202670.0p
August 202690.0p

To compare fuels fairly, turn everything into the cost of one kWh of heat. Assumptions: burning oil contains 10.29 kWh per litre and LPG 7.26 kWh per litre (gross calorific values from the government's 2026 conversion factors); boilers turn 85% of their fuel into heat; electricity and gas are at the Ofgem price cap for October to December 2026 (26.32p and 7.97p per kWh); the heat pump achieves 2.8, the median measured in the government's Electrification of Heat trial.

Cost of one kWh of heat, by fuel. Oil = price per litre ÷ 10.29 ÷ 0.85. Standing charges and servicing are not included.
HeatingCost per kWh of heat
Direct electric (storage heaters, panel heaters) at the standard capped rate26.3p
Oil boiler, heating oil at 104p per litre (March 2026)11.9p
Oil boiler, heating oil at 90p per litre (August 2026)10.3p
Air source heat pump, SPF 2.89.4p
Gas boiler9.4p
Oil boiler, heating oil at 70p per litre (July 2026)8.0p

The honest reading: against direct electric heating a heat pump is dramatically cheaper to run, because it delivers 2.8 units of heat for each unit of electricity instead of one. Against oil, it depends on the oil price, and the heating oil price fell by a third between April and July 2026, then rose again. LPG is not in the government price series; to compare, divide your own price per litre by 7.26, then by your boiler's efficiency.

What extra help is there for off-gas homes?

From 21 July 2026 until 31 March 2027, the Boiler Upgrade Scheme pays £9,000 instead of £7,500 towards an air-to-water or ground source heat pump in England and Wales, if all of these apply.

  • The property is not supplied with mains gas and has no record of a gas meter point. A capped or clamped supply still counts as on the gas grid.
  • It is not connected to a heat network, and it is not a new build.
  • The heating being replaced runs on oil or LPG.
  • All the usual scheme rules are met: you own the property, the installer is MCS certified, and so on. Self-builds can get £7,500 but not the uplift.

Demand has been immediate. The government's July 2026 statistics recorded 3,037 applications for the £9,000 grant between 21 and 31 July, 37% of all applications that month. Off-gas homes already accounted for 34,206 of the 90,115 grants paid since the scheme began, 38%. The rules are covered in full in the Boiler Upgrade Scheme explained, and our eligibility checker tells you which rate applies.

Should a home on mains gas still consider a heat pump?

Often yes, but with clear eyes. At the October to December 2026 price cap, a heat pump at the trial median efficiency costs about the same per unit of heat as an 85% efficient gas boiler, and pulls ahead with better design, a tariff with cheaper hours, or by letting you close the gas account and stop the £108 a year standing charge. Our running costs guide works through the numbers for different homes.

Sometimes the honest answer on the gas grid is a new boiler now and a heat pump after insulation. If your boiler has failed, your home loses heat fast and there is no budget for fabric work this year, that sequence can make more sense. Smart Energie installs both, so there is no reason for us to push you either way: get an instant boiler price and a heat pump survey, and compare them side by side.

What does the future look like for each?

  • Grant support: the Boiler Upgrade Scheme has been extended to 2030, and the regulations allow Ofgem to issue vouchers until 31 December 2029. The £9,000 off-gas rate is time-limited to 31 March 2027.
  • VAT: installing a heat pump in a home in Great Britain is zero-rated until 31 March 2027. Separately, VAT has been removed from domestic electricity bills from 1 October 2026 to 31 March 2027.
  • Planning: in England, the 2025 changes to permitted development removed the rule keeping air source heat pumps 1 metre from the boundary and raised the size limit on houses, which makes terraces and small plots easier. See planning permission for heat pumps.
  • Gas prices: the October 2026 price cap rise was driven mainly by higher gas costs. Gas unit rates rose by about 9% on the previous quarter, electricity by under 1%.

For the longer view on gas boilers, see the end of new gas boilers. If you would like a written plan that weighs up your own home, on the grid or off it, start with the retrofit planner.

Common questions

How do I know if my home is off the gas grid?

If you have no gas meter and no gas bill, you are off the grid for practical purposes. For the £9,000 grant the test is stricter: there must be no record of a gas meter point at the property at all, and a capped or clamped meter still counts as on-grid.

Is a heat pump cheaper to run than an oil boiler?

It depends on the oil price. At the October to December 2026 electricity price cap, a heat pump at an efficiency of 2.8 costs about 9.4p per kWh of heat. An 85% efficient oil boiler costs about 10.3p at August 2026's 90p a litre, 11.9p at March's 104p, and 8.0p at July's 70p.

Is a heat pump cheaper than storage heaters?

On unit costs, by a wide margin: about 9.4p per kWh of heat at an efficiency of 2.8, against 26.3p for direct electric heating at the standard capped rate. Storage heaters on an off-peak tariff pay less than the standard rate, so use your own tariff's rates to compare. Flats also need a suitable place for the outdoor unit.

Can I get connected to the gas grid instead?

Sometimes, but compare the connection cost with the grant available for a heat pump first. The £9,000 off-gas grant requires no record of a gas meter point, so connecting to gas would rule your home out of the higher rate.

Are LPG homes eligible for the £9,000 grant?

Yes. The uplift applies to off-gas-grid homes replacing oil or LPG heating with an air-to-water or ground source heat pump, in England and Wales, for applications from 21 July 2026 until 31 March 2027.

Next step

Put it into practice.

Map your home with the Retrofit Planner

Sources

  1. DESNZ: Sub-national estimates of properties not connected to the gas network, 2015 to 2024
  2. DESNZ: Typical retail prices of petroleum products (QEP 4.1.1), August 2026
  3. DESNZ: Greenhouse gas reporting conversion factors 2026 (fuel properties)
  4. Ofgem: Energy price cap unit rates and standing charges
  5. Ofgem: Energy price cap will rise by 4% from October 2026
  6. Ofgem: Boiler Upgrade Scheme guidance for installers V5.1 (July 2026)
  7. DESNZ: Boiler Upgrade Scheme statistics, July 2026
  8. Energy Systems Catapult: Electrification of Heat, Interim Insights from Heat Pump Performance Data (DESNZ-funded)
  9. HMRC: VAT on energy-saving materials and heating equipment (Notice 708/6)
  10. legislation.gov.uk: The Town and Country Planning (General Permitted Development) (England) (Amendment) Order 2025

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