Sir Keir Starmer has defended his decision to plunge hundreds of thousands more pensioners into poverty.

Government estimates show that the hated decision to scrap winter fuel payments will mean an estimated 50,000 extra OAPs are in relative poverty after housing costs next year, and 100,000 more in 2026.

The previously universal allowance, worth up to £300, is being restricted to only those on pension credit from this winter in a bid to save the public purse £1.5 billion a year.

Despite the official modelling, Sir Keir insisted elderly Britons would still be “better off” due to the increase in the state pension.

Sir Keir, speaking at the G20 Summit in Rio de Janeiro, said the figures also failed to take account of the household support fund and warm home discount scheme.

“And of course, on top of that, as we now know, the figure for the increase in state pensions for next year under the triple lock, because we’ve stabilised the economy, is about £470,” he added.

“And therefore pensioners will be better off because we’ve stabilised the economy.”

He said the Scottish Labour policy on reinstating winter fuel payments was “one of the features of devolution”.

“There are, not infrequently, different approaches taken in different nations across the United Kingdom.”

Tory shadow work and pensions secretary Helen Whately said: “Finally the dam breaks and we get to see what Labour have known all along.

“Labour made a political choice to give inflation busting pay rises to their union paymasters, and now 100,000 pensioners are going to be plunged into poverty.

“Now the true impact of their cut has been revealed it’s time for Labour to reverse it.”

Mr Sarwar said Scottish Labour would create a devolved payment if it wins the keys to Bute House in 2026 but would make it a “fairer system”.

He said: “A Scottish Labour government will reinstate the winter fuel payment for pensioners in Scotland.

“The winter fuel payment was supposed to be a devolved benefit this year and there were additional resources available to the Scottish Government through the household support fund.

“That meant we could have taken a different approach in Scotland to support more households this year – instead, the SNP decided to hand the power back to the Department for Work and Pensions (DWP).

“For months I have said that the eligibility criterion of pension credit is too low and called for a Scottish solution to this issue.

“That’s why Scottish Labour will take back this devolved power from the DWP, reinstate the winter fuel payment, and deliver a fairer system to ensure that everyone who needs support gets it.”

The change comes as Scottish Labour’s poll ratings have dropped following the winter fuel payment announcement and the freebies row.

Labour MP Jon Trickett, who voted against the cuts in the Commons in September, said: “Important announcement from Scottish Labour. As winter bites, I worry for our elders struggling to keep warm. In my area every village has at least one warm community room.

“But the Government should now correct its mistake and instate protective benefits to all who struggle.”