It is understood between 200 and 300 former workers were either overpaid or underpaid following the latest round of redundancies at the supermarket chain, the Press Association reports.

Chief executive Dave Lewis has apologised for the error and said letters were sent to affected former staff as soon as the problem was identified.

Tesco is now attempting to rectify its payments, either by further compensating people who were underpaid or by getting reimbursed for overpayments.

Former employees of the grocer who were overpaid by more than £500 will be able to keep £100 of the overpayment, while anyone who was overpaid by less than £500 will be able to keep the full amount.