Paul Goodman, the Shadow Communities Minister, has found that a third of the money allocated by a Government department to stop people becoming terrorists has been diverted to fund "other Departmental priorities".
£2.85m of the £8.5m that was supposed to be spent on preventing violent extremism was diverted.
These other priorities include increasing the number of houses given to prisoners on early release and monitoring the energy efficiency of every home in the country.
Goodman said that "this kind of incompetence" is no way to fulfil "the first job of any government" of keeping us safe.
He said that the Government had "boasted about how much money it was spending on counter-terrorism", without "thinking through what it was going to do with it".
"This provides yet another reason why the review of the Prevent strategy that we’ve been calling for is needed sooner rather than later", he added.