Company responsible for collecting bins in Milton Keynes records soaring profits over the past year

As a result, its frontline workers will each receive a £100 bonus.

The company, which published its financial report for the past year today, was recruited by the government last year to help set up the Test and Trace programme for tracking Covid cases around the country.

Campaigners and politicians have criticised Serco's role in the scheme, which cost more than £20m and failed repeatedly to hit its performance targets.

But Serco chief executive Rupert Soames told BBC's Today programme that Test & Trace was now a "remarkable success", though he acknowledged: "It has taken quite some time to get there."

Mr Soames has also defended Serco's decision pay a 1.4p a share dividend - the first for seven years - after the rise in profits.

"I think that it is fair that shareholders who over the last five years have come to the rescue of Serco and put £800m of equity into Serco should be allowed a dividend," he told the BBC.

The company's financial report shows its revenue, which is the total income before expenses, was a massive £3.9billion last year. Profits were up 36 per cent on 2019 to £163million, with £2m of tjhat reported to be from Covid-19 contracts.

Mr Soames said profits from Covid work amounted to just one per cent of the Serco's profits.

In MK, Serco workers have worked through lockdown and the pandemic to collect rubbish and recycling from city homes and keep streets litter free.

Last month two Milton Keynes Serco workers died after testing positive for Covid. Both of them were waste lorry drivers.

MK councillors called for an urgent investigation after the two deaths.

Days later the council announced that collections on green bins designed for food and garden waste would be suspended until further notice throughout the borough. Householders were told to put food waste into black sacks instead.

A spokesman said at the time: "Covid-19 has had a significant impact on us all, and in MK the cases are seriously high. As a result of reduced staffing, we’re suspending food and garden waste collections throughout MK.

"Our waste collection partner Serco has seen an increase of Covid-19 positive tests and staff requiring to isolate or shield. The situation is one that changes rapidly. In recent days nearly 40 per cent of the waste collections teams have been unavailable. So, to protect our core services we now need to prioritise collection of black and clear sacks."

In January there was more disruption to black bag and recycling collections when Serco workers struggled to cope with a deluge of seasonal rubbish, coupled with bad weather conditions and ongoing staff shortages.

Meanwhile the food and garden waste suspension is being reviewed weekly but the currently remains.

While many people are understanding, some are expressing concerns that green bins are becoming full and immoveable, particularly as people start gardening for the Spring. Some are loathe to put food waste into black bags because it may add to the city's rat problem.

Local rubbish tips remain open for people to dispose of their own waste, but only by appointment only. This system could be made permanent.

"We’re doing everything that we can to continue to provide essential services in these extreme circumstances and we thank you for continuing to support our crews as front line key workers," said the council spokesman.