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Consultants behind the Government’s hated Universal Credit scheme dodged paying tax on their earnings.

A probe found Department For Work and Pensions bosses shopped 70 of its own advisors - some of whom were paid up to £1,000-a-day - to HMRC in the past five years.

It was later discovered that 40 had either avoided some tax or paid none at all.

The tax-dodging was revealed by former DWP worker turned whistleblower Michael Keenan.

Today he tells the Sunday Mirror he raised concerns six years ago. He claims he was eventually forced out of his job at the DWP - who have spent millions overhauling the benefits system.

The consultants were brought in to help design Universal Credit, which rolls six different benefits into one.

(Image: Getty Images)

Whistleblower Michael says some were earning thousands a week for the ad-hoc consultancy work.

Government rules say workers employed this way must give assurances their tax affairs are above board.

Documents circulated by the Treasury previously warned departments should “terminate the contract if that assurance is not provided”.

But a Freedom of Information request sent to the DWP by Michael showed between 2012-2013 and 2014-2015 there were at least 70 referrals of contractors who were paid through personal service companies.

By being paid this way they were exposed to taxation of as little as 20-per-cent.

Workers paid directly would have paid at least 40-per-cent tax if paid through PAYE for permanent positions.

Records show 30 were found to have paid the correct amount of tax, but the rest either underpaid or paid none at all.

In 2013-2014 28 underpaid their taxes which is more than a third of the 79 consultants whose affairs were screened.

(Image: PA)

Of these 28, HMRC found 13 workers paid absolutely no tax on their DWP income.

None of the workers who were reported to HMRC for failing to make this promise have been prosecuted – even after some were found to have underpaid.

Court documents show at least eight were allowed to stay in work, in breach of the rules.

People First Party founder Michael, who worked for the DWP in Leeds for 20 years, said: “The worst thing is they kept working for the DWP.

And none of them faced criminal actions. This is just one public body - and I fear it’s the tip of the iceberg. The tax system is not fit for purpose.”

“We need this money to help society. It has to stop. Somebody has to stand up and say no more.”

Sign our Universal Credit petition The Mirror are demanding a halt to the expansion of Universal Credit and for a review to take place. We say there are three options: Redesign UC to be fit for purpose

Axe it in favour of the old system if UC is unfixable

Introduce a brand new system Sign our petition to stop the rollout of Universal Credit across Britain and to replace it with a fairer system by signing our petition.

Michael says he was gagged by bosses after realising temporary staff were being paid through personal service companies and avoiding tax.

He wrote to former Work and Pensions Secretary Iain Duncan-Smith and then Prime Minister David Cameron, but says nothing was done and millions in taxes has been lost.

Universal credit will see one payment replace income support, jobseeker’s allowance, employment and support allowance, housing benefit, child tax credit and working tax credit.

More than four million families could lose out under the plans, according to the Child Poverty Action Group.

At least 10 million people will be affected.

Earlier this week Work and Pensions Secretary Esther McVey admitted families could lose £200 a month from their benefit payments.

A Government spokesperson said: “DWP is absolutely committed to ensuring that all contractors provide the necessary assurances around their tax payments.

“During the period in question we sought independent assurance for all contractors and, if this was not forthcoming, terminated contracts immediately, referring them to HMRC for further action.”

To find out more about the People First Party search PFP-UK on Facebook.