An inquiry is underway into the early retirement deals at DVLA Swansea which have seen former employees return as £800 a day consultants with taxpayers picking up the bill.

A whistle-blower at the agency in Morriston has told local media about the events dating back two years and claims remaining full time staff are overworked and very annoyed.

Government bosses have now launched a review to see whether any rules have been broken at the DVLA and in its dealings with London-based CMC.

A whistle-blower who contacted Wales on Sunday said, “I would like to make you aware of an issue that is being discussed among the staff of DVLA as a scandal.

“Over the last two years DVLA has been offering a voluntary early retirement scheme under which staff over the age of 50 with adequate service could retire with a lump sum of three years’ pay, their pensions topped up to the maximum and three months’ pay.

“This was to massage the head count of DVLA down to comply with government targets. I understand 50 members of staff ultimately left under this scheme.

“To date, 20 of these staff have been brought back as ‘consultants’ with daily pay at between £600 and £800, occasionally to do their previous jobs and in some cases to carry out little more than administrative tasks.”

In a statement, the DVLA said the correct procedures were followed, but it has not elaborated on employees claims that two senior DVLA staff involved in granting the

contract to a private company have subsequently joined it at a senior level.