Twisted Sarah Davey befriended Lily Lilley then murdered her at her home in Failsworth, Greater Manchester.
Davey and her pal Lisa Healey throttled 71-year-old Lily so tightly she choked on her false teeth.
The pair also cut Lily’s legs with a knife and chucked treasured family photos in the bin.
They made hundreds of calls from her phone and used the gran’s pension money to buy crisps and chocolate.
After killing Lily, the evil pair put her body in a wheelie bin before dumping her in a canal.
Davey was handed an indefinite life sentence in 1999 for the “unspeakably wicked” murder.
But she has now been released from jail – despite being recalled seven times for breaching the terms of her licence.
Inmates at HMP Askham Grange branded Davey “Scary Sarah”, the Mirror reports.
The Parole Board confirmed Davey is back on the streets once more after being freed again last month.
She was last sent back to jail in 2022 and lost a parole bid after opioid painkiller subutex was found in her body.
The killer was just 14 when she murdered Lily in 1998 after the gran invited her in for a cup of tea.
She and Healey trashed her home by writing their names on the walls and carving them into the furniture.
Sentencing the pair, Mr Justice Sachs said: “You have both been convicted of an act of unbelievable cruelty.
“Two young girls for totally pathetic reasons destroyed a frail old lady in order to get her house.
“What you did was unspeakably wicked. You have not shown the slightest trace of remorse or regret.
“You are both hard young women who have committed a terrible crime which almost defies belief by right-thinking people.”
Davey was first released in March 2013 but has since been recalled to prison seven times for breaching the terms of her licence.
She will now be under strict conditions and could be imprisoned again if she breaches these.
The Parole Board has confirmed it released Davey following a hearing.
A spokesperson said: “Parole reviews are undertaken thoroughly and with extreme care. Protecting the public is our number one priority.”
KILLER KIDS
SARAH Davey is not the first UK teen to have carried out a horrific attack or murder, nor was she the last.
Twisted Scarlett Jenkinson and Eddie Ratcliffe, both 15, lured Brianna Ghey to a park near Warrington before they murdered her in a frenzied attack.
Teen sweethearts Kim Edwards and Lucas Markham, both aged 14 at the time, stabbed Kim’s mum Elizabeth Edwards, 49, and her younger sister Katie, 13, as they slept.
Jon Venables and Robert Thompson were just ten years old when they murdered two-year-old James Bulger.
In December 2014 two teenagers – known later in court as Girl A and Girl B – tortured and murdered Angela Wrightson, filming the attack on their phones.
Mary Bell strangled Martin Brown, four, and Brian Howe, three, in 1968, when she was just ten years old.
In 2012 three teenage yobs were handed the equivalent of life sentences after beating a homeless man to death.
Schoolboy Will Cornick stabbed his 61-year-old teacher Ann Maguire seven times as she taught a class at Corpus Christi Catholic College in Leeds when he was 15.
Daniel Bartlam was just 14 when he beat his mum to death in a hammer attack copied from Coronation Street.
Sharon Carr was aged just 12 when she stabbed 18-year-old hairdresser Katie Rackliff 32 times.
And in 2016 James Fairweather was unmasked as Britain’s youngest serial killer after murdering two strangers — then plotting to slay 15 more victims.