Hundreds of terrorists could be using British benefits to fund their extremist activities after the Government admitted it did not know the true scale of problem.

There have been calls for a thorough investigation into the issue after two men were convicted of channelling thousands of pounds of fraudulent housing benefits to the Islamist fanatics beind the Paris and Brussels terrorist outrages.

With more than 850 Britons thought to be currently fighting in Syria, counter terror experts believe large amounts of taxpayers' money is ending up in the hands of jihadists desperate to wage war on the West.

Birmingham City Council last night apologised and vowed to review its systems after it emerged that it had paid more than £5,400 to a Belgian man while he was fighting in Syria.

Anouar Haddouchi moved to Birmingham from his native Brussels in 2009 along with his wife, Muslim convert , Julie Maes, and their two children.