Inventive students have exploited a loophole in the education system to get thousands of pounds towards food and rent – while detained at Her Majesty’s pleasure.

It emerged today that £500,000 has been paid to prisoners in student grants and loans towards food and rent thanks to a glitch in the Education (Student Support) Regulations 2000. David Willetts, shadow universities secretary, is outraged: "The latest in a long line of Labour fiascos," he says.  Read more