Scotland Yard counter-terror officer Terri Nicholson revealed terrorists fighting for ISIS in Iraq and Syria were fraudulently claiming taxpayers’ money to fund attacks abroad.

She revealed there had been ‘a number of cases’ of terrorists making student loan claims to fund their activities.

The revelation sparked fury among MPs today. Keith Vaz, chairman of the Commons home affairs committee, said the prospect of benefits being used to fund overseas terror was ‘shocking’.

Mr Vaz said: ‘It is shocking that this is happening. We need to see assurances from government that the integrity of the student loan and benefits system has not been compromised, with the full cooperation of the banking network.’