Sir Keir Starmer has defended his government’s decision to scrap winter fuel payments for around 10 million pensioners from next month, saying the change is needed to help repair a £22bn “black hole” in public finances.

In a speech on Tuesday, the Labour prime minister said he had to be honest that “things [would] get worse before they [got] better” when it came to public spending.

The issue of how to help those struggling with energy bills will be discussed at a meeting between energy suppliers and a junior minister later on Wednesday.

It comes following the publication of a new report that has found that the reduction of people in fuel poverty has “flatlined” in the past few years.

“There has been a stalling of progress,” said the Rt Hon Caroline Flint, chair of the Committee on Fuel Poverty, which advises the government.

Ms Flint said that while the war in Ukraine and the Covid pandemic had “obscured the lack of material progress” being made in fuel poverty reduction, the committee had hoped more progress would have been made on its 2023 recommendations.

These included improving the affordability of bills through fairer pricing and creating a “robust” fuel poverty strategy.

Ms Flint added that without a change in government policy, a drop in fuel poverty levels was unlikely in the near future.

Wednesday’s meeting was called last week by Energy Consumers Minister Miatta Fahnbulleh after it was announced the energy price cap would rise from October.

Energy regulator Ofgem, trade association Energy UK and Citizens Advice have also been invited to attend.

Ms Fahnbulleh said that together they would “help households in energy debt and take proactive steps to stop others from falling into it”.

However, there are concerns the government’s decision to stop the annual winter fuel payments, worth between £100 and £300, to pensioners not on means-tested benefits could create a public health emergency.

“In real terms, the changes this winter mean that some older people will face the highest energy bills on record,” said Simon Francis, co-ordinator of the End Fuel Poverty Coalition.

“The impact of living in cold, damp homes is particularly harsh on those older people with a disability, a long-term health condition or with poor mental health.”

The charity Age UK says it believes “as many as two million pensioners who find paying their energy bills a real stretch will be seriously hit by this cut” and have launched a petition calling for a government U-turn.

The Conservatives have also urged Labour to back down on the decision and are seeking to challenge the policy change in the House of Commons.