Victims groups have attacked the Prison Service for agreeing to pay killer Michael Sams nearly £4,000 in an out-of-court agreement over paintings lost during a move between jails.

Sams, jailed for life in 1993 for the murder of Julie Dart and the abduction of estate agent Stephanie Slater, had planned to sue the Prison Service over the loss of six of his paintings.

The settlement means plans to relocate a court into a maximum-security prison have been scrapped.

But director of the Victims of Crime Trust, Norman Brennan, condemned the pay-out. He said new laws were needed to stop inmates pursuing claims against the Prison Service.

'Bizzare' decision

"This is appalling," he said."Those that have taken the life of others and been convicted of murder should be given the basic human rights and after that should not be allowed to take up large amounts of taxpayers' money and sue the Prison Service with often frivolous cases.

"Sams should be very glad he's had the opportunity to paint - that's an opportunity his victim Julie Dart doesn't have.

"I am aghast, and so are victims and the law abiding public, at these bizarre pay-outs to criminals by the Prison Service."

The Prison Service, which had contested the claim, confirmed the matter had been resolved.

A spokeswoman said: "The case has now been settled.

"The original hearing scheduled for 18 February will not now take place.

"The prisoner has accepted our offer but will not receive the money himself. It will go to nominated recipients."

It is understood the Prison Service decided it would be cheaper to settle the matter now rather than procede with what might have been a lengthy court case.

The settlement comes after plans were originally drawn up for a special court hearing inside Whitemoor Prison, Cambridgeshire, to consider the case.

The Prison Service decided it would be cheaper to set up court in the prison - where Sams was detained before his transfer to a maximum-security unit in Durham - than to make the necessary security arrangements for an external court visit.