She sparked a backlash when she issued a tearful apology on behalf of the nation to a migrant in the Calais Jungle 'on behalf of her country'.
But Lily Allen was thrust into the limelight for an offensive 'racial' joke she made about the traveller community outside a nightclub.
In the clip, which is thought to date back to 2008, a raven-haired Lily can be seen giggling as she delivers the offensive joke.
Stood outside Ronnie Scott's jazz club in London, the Smile singer appears to be in extremely high spirits.
As she chats away in the evening air she asks the small group: 'What do you call a hippo that lives in a caravan?'
She then delivers the punchline to the joke as she giggles, saying: 'A gypo.'
As one man comments that the gag she finds so funny is 'racial', she replies that it's 'regionalist' as continues to giggle.
MailOnline has contacted Lily's spokesperson for comment.
Cliff Codona, of the National Traveller Action Group, slammed the singer, telling the paper: 'Her comments are stupid.
'You would expect someone in the public eye, especially in front of so many cameras, to hold back from poking fun at a minority group like ours who already face discrimination.'
The video comes at a time when the singer is already under fire after she apologised on behalf of the nation to a young migrant in the Calais Jungle.
Lily was filming a segment for the BBC's Victoria Derbyshire show when she became emotional whilst meeting with a boy aged 13 from Afghanistan, who has risked his life trying to board UK-bound lorries.
The teenager, who said his father lives in Birmingham, has been camped at the Jungle on the edge of the northern French port city for two months.
But Lilly's comments led to her receiving abuse online - with viewers claiming her 'crocodile tears' and apology were 'ridiculous', and that she was 'so annoying'.
Do not apologise for this country Allen, you cretin. This great country prefers to look after its own. Get over it. https://t.co/hpy1atrsOf— Katie Hopkins (@KTHopkins) October 12, 2016
The singer later hit back by tweeting that she was only saying sorry to a 'helpless child for the part this country has played in contributing to his dire situation'.
During the meeting on camera with the boy in France, Lilly said: ‘It just seems that at three different intervals in this young boy’s life, the English in particular have put you in danger.
‘We’ve bombed your country, put you in the hands of the Taliban and now put you in danger of risking your life to get into our country.
‘I apologise on behalf of my country. I’m sorry for what we have put you through.’
Following the programme, Allen took to Twitter to complain that she was receiving a large amount of abuse for her comments and visit to the camp.
She tweeted: ‘Wow, so much abuse for apologising to a helpless child for the part this country has played in contributing to his dire situation.
‘A lot of people saying I should be more concerned about cases of migrants raping our own citizens.
‘I was talking about the 1,022 unaccompanied children in Calais, who are to be evicted next week.
‘I haven't heard any cases of children raping people here, I'd imagine they're far more likely to suffer at the hands of opportunist abusers.’
© Associated Newspapers Ltd.