The Home Secretary said he ordered the review to determine if taxpayers' money was being spent properly in concealing the identity of Iorworth Hoare, who won the money while serving a life sentence for attempted rape.
The Sun newspaper reported yesterday that Hoare, 52, was living in Sunderland and that a large team of probation officers, police, and local authority workers had helped him when he was released from prison in March. Mr Clarke, said: "I have asked my department to look at the details of this particular case and some of the broader issues that it raises."
Hoare won £7m on a Lotto Extra ticket in August 2004 while on day release. He has a catalogue of crimes that date back to the Seventies and include rape, attempted rapes and indecent assaults. He was jailed for life in 1989 but freed on parole.