Mary-Ann Leneghan was murdered in Reading's Prospect Park
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Charles Clarke says improving the way offenders are supervised while on probation is his "number one priority".
He said recent cases in which offenders had carried out crimes, including murder, while under supervision had exposed a "major problem".
The home secretary spoke after it emerged that four of the men who killed Mary-Ann Leneghan in Reading had been under supervision in the community.
He is due to report to MPs on a review of the probation system in April.
Shadow home secretary David Davis has accused the government of mishandling the probation service.
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There have been serious mistakes within our probation system and Parole Board system, which let out people who ought not to be free
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During a speech at City University in London on Tuesday, Mr Clarke said: "We do have a major problem of public protection.
"There have been serious mistakes within our probation system and Parole Board system, which let out people who ought not to be free.
"I would say this is my number one priority."
He said better partnerships were needed between the criminal justice system and the wider community to combat crime.
The way offenders are provided with education, healthcare, potential employment and housing was also important, he said.
"We haven't created yet the framework in which that can happen in the best possible way," he said.
String of cases
His comments come a day after a sixth gang member behind the kidnap and stabbing of 16-year-old Mary-Ann Leneghan was found guilty of murder.
Mary-Ann and her 18-year-old friend were abducted in central Reading last May before being taken to a guest house where they were raped and tortured.
They were then driven to the Berkshire town's Prospect Park to be killed.
Mary-Ann died from repeated stab wounds while her friend, who cannot be named, was shot in the head but survived.
Drug dealer Adrian Thomas, 20, and fellow gang members Michael Johnson, 19, Jamaile Morally, 22, and 18-year-old Indrit Krasniqi, who was convicted on Monday, were all serving community sentences at the time of the killing.
Ministers have been under fire following a string of other high-profile crimes committed by supervised offenders.
They include the murder of wealthy financier John Monckton and that of teacher Robert Symons, both in London, and the killing of Nottingham jeweller Marian Bates.