One of Britain's most notorious child killers is back on the streets: Sadistic schoolgirl who was just 14 when she tortured grandmother to death then dumped her body in a canal is released from jail again

A Teenage murderer who tortured a gran and dumped her body in a canal has been freed - despite being recalled to jail seven times before.

Sarah Davey was 14 when she and a pal beat gran Lily Lilley, 71, in her terraced home.

Davey - one of Britain's most notorious young killers - and her friend befriended lonely Lily at her home in Failsworth, Greater Manchester.

After being invited in for a cup of tea, they taunted her, squirted her with shampoo and cut her legs with a knife. Her body was dumped in a wheelie bin before they pushed it through the streets and overturned it into a canal.

They had choked her with a gag tied so tightly that her false teeth were driven down her throat. A framed photo of her son as a baby was thrown into the bin. The pair then took over her house, making hundreds of calls from her phone and used her pension money to buy crisps and chocolate.

Davey - now in her late 30s - was locked up indefinitely in 1999 for what the judge described as an 'unspeakably wicked' murder.

MailOnline can reveal she was released from jail on March 23 after a decision by the Parole Board. 

Davey repeatedly breached her conditions for the original murder. She was first released in March 2013 but kept getting recalled - and has been freed seven times before. 

The case drew parallels with that of the killers of little Jamie Bulger.

Shocking photos have seen her decked out in make up and glam clothes while in jail.

She even enjoyed nights out and shopping trips.

In her most recent attempt from prison, she argued she should be released but it was rejected after the opioid painkiller subutex was found in her system.

News of her release has sparked outrage. Tory MP Nigel Mills said: 'It's disgraceful. This is a truly evil crime. It is appalling. This is not justice. She is laughing at justice.'

A source said: 'It's horrific. The poor victim died in the most distressing and humiliating way imaginable.'

Parole Board documents said: 'She has been released on licence on seven occasions since her first such release in March 2013. Each of those licences has been revoked and she has been recalled to prison.' 

Documents shared with Mail Online by the Parole Board have examined 'progress' she is said to have made. 

They said: 'Evidence was presented at the hearing regarding Ms Davey's progress and custodial conduct during this sentence and since recall. She had engaged with programmes to address how she manages her emotions, healthy relationships, and one to one work with her prison supervisor. 

'Ms Davey is also working with a service that help those with difficult aspects to their personality and this will continue in the community.

 'The panel heard that overall Ms Davey had demonstrated application of relevant skills and learning while in custody. Witnesses, namely the prison psychologist, the prisoner commissioned psychologist, the community probation officer and prison supervisor, recommended release. '

A spokesperson for the Ministry of Justice said: 'Sarah Davey will be subject to close supervision for the rest of her life and can be recalled to prison if she breaches the strict conditions of her release.'

A spokesperson for the Parole Board said: 'We can confirm that a panel of the Parole Board has directed the release of Sarah Davey following an oral hearing.

'Parole Board decisions are solely focused on what risk a prisoner could represent to the public if released and whether that risk is manageable in the community.

'A panel will carefully examine a huge range of evidence, including details of the original crime, and any evidence of behaviour change, as well as explore the harm done and impact the crime has had on the victims.

'Members read and digest hundreds of pages of evidence and reports in the lead up to an oral hearing.

'Evidence from witnesses such as probation officers, psychiatrists and psychologists, officials supervising the offender in prison as well as victim personal statements may be given at the hearing.

'It is standard for the prisoner and witnesses to be questioned at length during the hearing which often lasts a full day or more.

'Parole reviews are undertaken thoroughly and with extreme care. Protecting the public is our number one priority.'