Talking to Channel 4 reporter Jon Snow, the singer revealed emergency personnel are estimating the number of lives lost closer to 150 – many of whom are children.
“If we are talking about bringing reality into these people's lives, I think what people would really like is a more honest count of how many people have actually died in this event, how many people have been killed,” she said.
“I feel like the government are trying to micro manage people's grieving here.
“I have never in my entire life seen an event like this were the death count has been downplayed by the mainstream media.”
“Seventeen? I'm sorry but I am hearing from people the figure is much closer to 150 - and that many of those people are children,” Allen, who lives nearby, added.
“They are off-the-record numbers I have been given from policemen and from firemen.”
Allen also spoke for the victims who are furious with the council.
“There's a lot of anger here towards the council - how they dealt with people's concerns leading up to and after the event.”
Allen has been vocal on Twitter about her disappointment in England's politicians regarding the fire.
A mother who was trapped on the 11th floor with her six-year-old and partner has spoken out about how her quick thinking saved their lives.
The trio was trapped until 3am after obeying signs that told them to stay in the building in case of a fire.
While they waited, Natasha Elcock let her bath overflow to keep the floors cool and wet.
“I let the bathroom flood - it kept the flat damp - it may have saved our lives.”
“We tried the door but it was too hot,” she explained.
“We had our little girl on the wet floor and we went to the coldest room.”
“The door was buckling and the windows bubbling and cracking. It was terrifying.”
Horrific photos have surfaced from inside the building showing the smouldering remains of apartments left completely decimated by the blaze.
As fire fighters continue to sift through the wreckage, it’s emerged that the US had banned the type of cladding that caused the 24-storey block to go up in flames.