Sir Keir Starmer has again defended cutting the winter fuel allowance, despite Labour MPs blaming it for the party’s poor performance at the local elections.

Tory leader Kemi Badenoch opened her remarks at PMQs by asking the prime minister if he would now “admit he was wrong” to take the payment away from millions of pensioners.

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Means testing the benefit was one of the government’s first policy announcements. Sir Keir said the move would help “put our finances back in order after the last government lost control”.

He said Labour’s policies so far had enabled it to stabilise the economy, invest in the NHS and sign a new trade deal with India – the UK’s biggest since it left the EU.

But tapping into discontent within Labour, Ms Badenoch cited criticism from Welsh First Minister Eluned Morgan, the party’s mayor in Doncaster, and backbench MPs.

“He’s refused to listen to me on this. Will he at least listen to his own party and change course?” she asked.

The prime minister claimed Labour was the only party willing to say “how they would put the finances straight” and “take those challenges on”.

‘Act now before it’s too late’

Sir Keir’s defence of the winter fuel changes – which mean only the poorest pensioners on pension credit now receive the top-up – comes after Labour MPs demanded the government “act now before it’s too late” and reverse the unpopular policy.

A number of MPs in the Red Wall – Labour’s traditional heartlands in the north of England – reposted a statement on social media in which they said the leadership’s response to the local elections had “fallen on deaf ears”.

They singled out the cut to the winter fuel allowance as an issue that was raised on the doorstep and urged the government to rethink the policy, arguing doing so “isn’t weak, it takes us to a position of strength”.

The group, thought to number about 40 MPs, met on Tuesday night following the fallout of local election results in England, which saw Labour lose the Runcorn by-election and control of Doncaster Council to Reform.

Nigel Farage’s party also picked up more than 650 councillors and won control of 10 councils.

Following the results, Sir Keir said “we must deliver that change even more quickly – we must go even further”.

Some Labour MPs believe it amounted to ignoring voters’ concerns.

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‘There is a lack of vision’

One of the MPs who was present at last night’s meeting told Sky News there was “lots of anger at the government’s response to the results”.

“People acknowledged the winter fuel allowance was the main issue for us on the doorstep,” they said.

“There is a lack of vision from this government.”

Another added: “Everyone was furious.”

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Downing Street has ruled out a U-turn on means testing the winter fuel payment, following newspaper reports earlier this week one might be on the cards.

The prime minister’s official spokesman said: “The policy is set out, there will not be a change to the government’s policy.”

They added the decision was necessary “to ensure economic stability and repair the public finances following the £22bn black hole left by the previous government”.