Malik: £1,000 council tax overclaim

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The revelation in the Daily Telegraph puts more pressure on the MP for Dewsbury, in Yorkshire, who is being investigated by the Parliamentary Standards Commissioner after a complaint about his use of MPs' allowances.

The Daily Telegraph reports the communities minister claimed £2,999 in expenses for the band C property in Southwark, south London, over two years when the payments should only have been £1,984.

Mr Malik stepped down from his previous Government job while Sir Philip Mawer, Gordon Brown's adviser on the ministerial code, examined his housing arrangements.

It was claimed in the Daily Telegraph that he was being charged well below market rates for his constituency home.

Sir Philip's report criticised him for being unable to produce receipts or a rental agreement to back his case.

But he concluded there had been no "preferential rent", paving the way for Mr Malik's return as Communities Minister.

Mr Malik, who became Britain's first Muslim minister when he was appointed to the Department for International Development in 2007, has said he will repay any money overclaimed in council tax allowances.