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A convicted Islamist terrorist who was caught trying to smuggle blueprints into Britain showing how to build a missile has been released from prison early under the Government’s controversial plans to ease prison overcrowding.

Yassin Nassari, a Category A prisoner who was sentenced to three and a half years imprisonment last summer, was released early from Wakefield prison last month, the Ministry of Justice (MoJ) confirmed today.

More than 18,500 prisoners have been freed under the scheme since it was introduced by Jack Straw, the Justice secretary, last June.

They included more than 3,500 violent offenders, 1,730 burglars, 400 robbers and 790 people jailed for drug offences.

Dominic Grieve, the shadow justice secretary, said Straw’s disclosure made a mockery of government criminal justice policy. “Hard-pressed taxpayers will be flabbergasted to learn they are compensating prisoners for being released early – it just adds insult to injury,” Grieve said.