Radio 1 has reversed its decision to bleep out "faggot" from the Pogues hit Fairytale Of New York.

The station had said the term could be offensive. But last night controller Andy Parfitt said: "After careful consideration, I have decided the decision to edit Fairytale of New York was wrong."

Mr Parfitt said the song, a duet between Pogues frontman Shane MacGowan and late singer Kirsty MacColl, did not use the word with "negative intent".

He explained: "Radio 1 does not play homophobic lyrics or condone bullying. It is not always easy to get this right, mindful of our responsibility to our young audience. The unedited version will be played from now on.

"I want to stress everyone at Radio 1 and its music team take the issue of language very seriously and enormous care is taken in ensuring offensive language is edited where necessary. I understand absolutely, in a climate where questions about editorial standards are at the fore, the thinking behind this decision.

"While we would never condone prejudice, we know our audiences are smart enough to distinguish between maliciousness and creative freedom."

The decision to edit the song baffled listeners because Radio 1 has played it uncensored for 20 years.

The lyrics read: "You're a bum/You're a punk/You're an old slut on junk/Lying there almost dead on a drip in that bed. You scumbag, you maggot/You cheap lousy faggot/Happy Christmas your arse/I pray God it's our last."

Radio 1 bleeped out "slut" and "faggot" but other BBC stations, including Radio 2, continued with an uncensored version.

Earlier yesterday, MacColl's mother Jean hit out at Radio 1's decision, describing it as 'pathetic'.

Fairytale Of New York was released in 1987 and reached number two.

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