The charities watchdog has opened a compliance case into a British charity over “serious allegations” that the money it raises for families in Gaza ends up with Hamas.

The Charity Commission is examining the way that Save One Life UK distributes the money it collects in the UK.

The London-based charity is already being investigated by counter-terror police over claims the cash it distributes for children and their families may end up in the coffers of the banned terror group.

The Telegraph revealed earlier this year that concerns have been raised about an alleged lack of control over the way the funds raised are spent.

But the Charity Commission, which regulates all charities operating in Britain, has now opened a preliminary investigation – known as a regulatory compliance case – following allegations made about Save One Life UK.