David Blunkett is unable to stop a jailed rapist from keeping the £7 million he won on the Lotto, the Home Office admitted last night.

One Whitehall official told The Times: "I would hate to be the official having to frame a policy on the basis of this incident. You have to feel sorry for them."

A Home Office spokesman said: "We can make sure he cannot get access to the money while he is in jail but we cannot get the money from him when he is out."