THOUSANDS of pounds of charity donations were used by the London bombers to pay for propaganda activities, it is reported.

BBC Children In Need confirmed that it gave £20,000 to the Leeds Community School in Beeston between 1998 and 1999 in good faith to pay for educational work for local children.

The school shared premises and cash with the Iqra bookshop, where the 7/7 bombers Mohammed Siddique Khan, of Dewsbury, and Shehzad Tanweer, of Leeds, worked, said a report.

A former employee of the school and bookshop, Martin Gilbertson, told the programme the school received thousands of pounds, some of which was used by Khan and Tanweer.

He said he had become increasingly alarmed by their extremism.

“Leeds Community School got just short of £250,000 from Leeds City Council and other sources,” he said.

“They blamed everything on the Jewish conspiracy, they hated western culture. It was like living with jihad on a daily basis.”

Children In Need chief executive David Ramsden said: “We did make an award to Leeds Community School over nine years ago.

“Any allegation that any funding we’ve given to any project has been misused and not used to change the lives of disadvantaged children and young people makes me concerned and very sad.’’

A statement from Children In Need read: “The grants made by BBC Children In Need to Leeds Community School, itself a charity registered with the Charity Commission, were given in good faith in 1998 and 1999.

“No evidence has been produced that the money they received was used for terrorist activity. Clearly if there is an allegation of fraud, then it is a matter for the police.’’

Fifty-two people were killed and hundreds injured by four suicide bombers on the London Underground and a bus.

A report said the money was used by Khan and Tanweer to produce hundreds of propaganda videos glorifying armed Islamic resistance and to pay for outward bound trips.

Imtiaz Ameen, a former Conservative councillor for Dewsbury South, where Khan lived, said he did not believe the group would have used money from charities as it would have risked drawing attention from the authorities.