Proposals to offer extremists including returning jihadists taxpayer-funded housing and help into work are a “fundamental error” amounting to bribes to potential terrorists, it has been claimed.

The Home Office is looking at a new strategy to reintegrate extremists that could even see them propelled to the top of council house waiting lists if needed.

Under pilot schemes being looked at, police and local authorities would assess extremists formerly investigated as suspects by the security services to see what danger they pose and what it would take to help reintegrate them into society.

Extremists who had nowhere suitable to live could be put in social housing by the local council and could have their rent paid if necessary, according to reports.

They could also be given priority on waiting lists and helped into education and training or found a job with public bodies or charities.