We're now ending our coverage of the first PMQs session after the summer break - thanks for following along.

Starmer was quizzed by Sunak on winter fuel payments and the UK's decision to suspend some arms exports to Israel, while both leaders paid tribute to the 72 victims of the Grenfell Tower fire as the inquiry's report was released.

The House of Commons is now debating the report, which claims victims were "failed by dishonesty" and that the deaths were avoidable.

You can follow our coverage of the report's release and Parliament's debate here.

Winter fuel payments

• The Conservatives and the Lib Dems both led their questioning on the decision to axe winter fuel payments for millions of pensioners
• Sunak accused Starmer of taking money from older people to give "inflation-busting" pay rises to "unionised workforces" such as train drivers
• The PM said his party was elected to "clear up the mess" left by the Tories, which he said includes addressing a "£22bn black hole" – the economy cannot function without working trains or a functioning NHS, he said
• Sunak defended the situation left by his government, saying Labour inherited the fastest growing economy in the G7 and a low deficit – with the latter claim being met by laughter on the Labour benches

Israel

• Sunak also grilled Starmer on the government's decision to suspend some arms export licences to Israel - challenging the PM to offer reassurance that the UK supports Israel's right to defend itself
• Starmer said he stands behind Israel's right to self-defence, but said the suspension was a "legal decision, not a policy decision"

We have heard a lot about the winter fuel payment today, in light of the government's decision to axe it for the majority of pensioners.

Introduced in 1997 for those over state pension age, it is intended to help with higher energy bills that come with keeping a home warm during the winter.

Payments range between £100 and £300, depending on the age of the recipient and whether they live alone. More than 11.3 million pensioners received it for the 2022-23 winter.

In July, the government changed the eligibility criteria, meaning those not on pension credit or other means-tested benefits will no longer receive it.

It means around 10 million pensioners in England and Wales who would previously have been eligible will not receive the payment for this winter. The devolved governments in Scotland and Northern Ireland have since announced they would follow suit and introduce means testing.

Is there a £22bn black hole in the public finances?published at 12:53 British Summer Time 4 September

12:53 BST 4 September

The prime minister was asked by Conservative leader Rishi Sunak about the decision to restrict winter fuel payments to those receiving pension credit.

He responded that when Labour came to office: “Our first job was to audit the books and what we found was a £22bn black hole.”

The figure comes from a document published by the Treasury at the end of July , externalwhich laid out the unexpected spending that would be needed this year. Labour says the previous Conservative government had not been open about the full state of the public finances.

We know there is some truth to that: the Office for Budget Responsibility, which is meant to keep an eye on government finances, said it had not been made aware of the extent of those extra costs., external

Paul Johnson, the head of the Institute for Fiscal Studies (IFS) think tank, said that it wouldn’t have been clear to Labour that money had not been set aside for a number of the previous government’s new initiatives.

But the IFS also said some of the spending pressures should have been anticipated and that it was obvious before the election that tax rises would be needed to maintain public services, external.

Read more in BBC Verify's full investigation into the £22bn budget "black hole".

Conservative MP Dame Karen Bradley is given the final question.

She asks the prime minister if he can guarantee that her Staffordshire Moorlands constituency will not be "forced into a devolution deal" against its will.

It's very important local people have a say on whether they get a devolution deal, says Starmer. But it's also important local people have a say on decisions in their area.

Returning to PMQs, in a heated exchange, Pete Wishart of the SNP says "things can only get worse" appears the best the PM could offer the public after 14 years of "miserable" Tory rule.

Has Starmer's popularity wavered because "his austerity is even worse than the Conservative variety", he asks.

"I remember when they used to sit here," Starmer quips, pointing to where the SNP sat when they were the third largest party in the house.

"There's very few of them, so I don't think we need lectures on popularity," he says, to laughter in the chamber.

The PM has just finished taking questions from backbenchers - we'll continue to bring you reaction and analysis.

He's now giving a statement on the final report into the Grenfell Tower disaster - you can follow his speech and the subsequent debate on our Grenfell Tower inquiry live page.

Deirdre Costigan Labour MP for Ealing Southall says crime and "street drinking" are blighting her constituency.

She asks Starmer how he'll transform town centres so people can "finally feel safe again".

Starmer says he will put more police on the street, have more effective powers to deal with anti-social behaviour and introduce youth programmes "to divert young people who are getting into trouble".

Conservative MP Rebecca Paul asks about the winter fuel payment cuts, and if the prime minister would consider broadening the eligibility for lower income pensioners.

Starmer doesn't directly answer the question, and again mentions the "£22bn black hole" he says the Conservatives left.

The prime minister says he is "not going to apologise for clearing up the mess that they left".

Labour MP Peter Prinsely says that, as a surgeon, he welcomes the measures taken by Labour to fix the NHS, but hospitals in his constituency are badly affected by Reinforced Autoclaved Aerated Concrete (Raac).

He asks Starmer whether hospitals affected by RAAC should be a priority, and the PM replies that he agrees.

Two big, controversial decisions dominate PMQspublished at 12:34 British Summer Time 4 September

12:34 BST 4 September

Chris Mason
Political editor

The main exchanges at PMQs were dominated by two of the big, controversial decisions the new government has taken - scrapping winter fuel payment for millions of pensioners and the suspension of some export licences to Israel.

On the winter fuel payment, today’s changes highlighted the very tricky spot for the government on this. Pensioners who very narrowly miss out on pension credit, and so will now not get the winter fuel payment, would not remotely regard themselves as well off.

The specific example the Liberal Democrat leader Sir Ed Davey presented to the prime minister emphasised starkly how hard it will be for ministers to explain this choice to people who will just miss out.

They are the choices and dilemmas of government that confront new-ish ministers every day now.

Harriet Cross, the Conservative MP for Gordon and Buchan, asks about windfall tax increases on the oil and gas industry, which she says industry leaders have called "economic suicide".

Starmer says the government are "committed" to transitioning to renewable energy, but says oil and gas "will play its part for many years to come".

Labour's Emma Foody asks the PM about inflated concert ticket prices - mentioning "furious" Oasis fans.

She asks whether Starmer agrees "urgent action is needed to protect fans against this horrid practice".

Starmer jokes that "half the country is queuing for tickets", but tells the MP for Cramlington and Killingworth it's "depressing" to hear of price hikes.

He says the government is starting a consultation on how to put fans back to the "heart of live music".

Image source, UK Parliament

DUP leader Gavin Robinson asks the prime minister to engage in a discussion about uplifting the national security grant to the Police Service of Northern Ireland, and ensure it can face challenges head on.

Starmer says he recognises the "difficult" financial situation it faces, but it is up to the justice minister to set the budget.

He adds that he has been speaking to them about what further support might be possible.

Will the PM support the Lib Dem campaign to invest in insulation and renewables to make it cheaper to heat homes, Davey asks.

Yes, replies Starmer.

Directly addressing the issue of older people and their heating bills, he says there are 800,000 pensioners who are not claiming pension credit, he says. The government is making efforts to encourage them to claim it.

This, along with the pension triple lock, will make a "massive difference", he adds.

Image source, UK Parliament

Lib Dem leader Ed Davey starts by echoing Starmer's Grenfell tribute.

He then asks the PM about winter fuel allowances, and what advice Starmer has for struggling for pensioners this winter.

Starmer thanks Davey for asking the question.

"We have taken a difficult decision, and I am not pretending it's not a difficult decision," he says.

Starmer says once again that they can't ignore the state of public finances and have to take tough decisions that the Tories "walked away" from.

For context: Chancellor Rachel Reeves announced in late July that about 10 million pensioners in England and Wales would lose their winter fuel payments as the allowance is restricted only to those in receipt of pension credit.

Sunak asks the prime minister if he can take this moment to "reassure" Israel that the UK stands behind its right to defend itself.

Starmer repeats his stance on this - saying he has made that "repeatedly clear" with Israel.

In relation to licences, however, the prime minister says it isn't "an Israel issue", it's about all licences.

He says that a legal conclusion was made, adding he doesn't think Sunak "is really inviting me to put that to one side", which is met by jeers from the opposition benches.

It is a serious issue, Starmer says, and the country has to comply with international law.

Sunak asks what engagement Starmer had with the US before suspending some arms export licences to Israel.

Starmer says "we have talked this through with our allies" but says they have a different legal system.

Applying the legal framework does not permit him to say he is not going to implement "the legal decision and conclusion" that was reached, he says.

Sunak turns to the government's decision to suspend 30 of the UK's 350 arms export licences to Israel.

Can the PM explain how this decision will help secure the release of 101 hostages still being held by Hamas, he asks.

The Commons is hushed as Starmer says he was shocked by Hamas's killing of six hostages in the past few days.

The remaining hostages must be released, he says. "We need a ceasefire to ensure that that can happen," he adds.

The decision to suspend arms licenses was "a legal decision, not a policy decision", Starmer tells the chamber. He says the government was following a legal process to review the licenses.

Sunak says UK public finances are more robust than other economies, and claims Labour inherited a low deficit - to laughter from the Labour backbenches.

The Speaker interrupts Sunak to quiet down some MPs - the Tory leader then says Starmer opposed every tough decision the Tories made.

He challenges the PM to "very specifically" tell poor pensioners how much less support they would receive.

Starmer reiterates the Tories left Labour an inheritance that amounts to a £22bn black hole, adding "we have to take tough decisions".