Fuel poverty and winter fuel payments

Fuel poverty is the problem faced by households living on a low income in a home which cannot be kept warm at reasonable cost. Fuel poverty in England is measured using the low income low energy efficiency (LILEE) metric.

A household is classed as being in fuel poverty if the property has a fuel poverty energy efficiency rating of band D or below (as determined by the most up-to-date fuel poverty energy efficiency rating methodology) and the amount of money required to heat the property leaves the household with a disposable income that is below the official poverty line.

The winter fuel payment is an annual, tax-free lump sum payment intended to give people who have reached state pension age reassurance they can afford to heat their homes in winter. Before 2024/25, payments of between £100 and £300 were made to individuals depending on the recipient’s age and circumstances.

In 2024/25, eligibility for winter fuel payments was restricted to those in receipt of an eligible means-tested benefit to focus payments on pensioners considered to be most at risk of fuel poverty. Payments of either £200 or £300 were made at the household level depending on the individuals' ages and circumstances.

The latest figures for households in fuel poverty are for 2023. The latest figures for recipients of winter fuel payments are for winter 2024/25.

Key figures

• In Lancashire-12, 66,833 (12.3%) households were classed as being in fuel poverty (England = 11.4%).
• In Lancashire-14, 87,077 (13.0%) households were classed as being in fuel poverty.
• Blackpool (17.1%) had the highest proportion of households in fuel poverty in Lancashire-14, followed by Burnley (16.2%), Pendle (16.0%) and Hyndburn (15.2%).
• Compared to the previous year, there were 11,314 fewer households in fuel poverty in Lancashire-12, down from 78,157 (14.5%) households in 2022.
• There were 27,309 recipients of winter fuel payments in Lancashire-12, this was 10.6% of the population aged 66 and over.
• Blackpool (5,152), Blackburn with Darwen (3,947), and Preston (3,218) had the largest number of recipients of winter fuel payments in Lancashire-14.
• Compared to the previous, the number of recipients of winter fuel payments decreased by 218,639 (88.9%) in Lancashire-12 (England = 88.1% decrease).

Source: Fuel poverty sub regional statistics from the Department for Energy Security and Net Zero, winter fuel payment statistics from the Department of Work and Pensions, powered by LG Inform Plus.

Page updated 18 November 2025