The word 'faggot' will no longer be 'faded out' during plays of the song on the UK pop music station.

BBC 1 controller Andy Parfitt said last night: "After careful consideration, I have decided that the decision to edit the Pogues song 'Fairytale Of New York' was wrong."

Parfitt said that the song did not use the word with any 'negative intent'.

He said: "Radio 1 does not play homophobic lyrics or condone bullying of any kind. 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."

He continued: "I want to stress that everyone at Radio 1 and its music team take the issue of language very seriously and enormous care is taken in ensuring that offensive language is edited from records 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 of any kind, we know our audiences are smart enough to distinguish between maliciousness and creative freedom," said Parfitt.

He concluded: "In the context of this song, I do not feel that there is any negative intent behind the use of the words, hence the reversal of the decision."

There was widespread public backlash at the initial decision to censor the song, with 95% of respondents to a poll on the BBC's own website disagreeing with the move. The mother of the late Kirsty MacColl, who duetted with Shane McGowan on the song, called the action 'pathetic'.