A DRUNKEN fire-raiser who started blaze that could have killed two sleeping children and their family, was today behind bars.

Burnley Crown Court heard Peter Stuttard, 25, had been thrown out of a party next door to the home.

He had been drinking until dawn after losing his job.

He then lit a piece of paper in the letter box of the house in Cog Lane, Burnley, on June 19.

The children's grandfather and his son, who were babysitting, managed to rescue them from their beds but the youngsters - one of them just two years old and the other aged five - were so shaken by their ordeal they have started to wet themselves.

Three months on, the children and their family have still not been able to return to their home after the blaze, which caused £10,000 in damage.

The court was told Stuttard, who was in breach of a curfew at the time, later walked into Burnley police station with his mother, handed to officers a lighter.

He said: "I did it with this," and then started to cry.

Sentencing him to four years and nine months in jail, Recorder David Aubrey QC told the defendant it was only by the grace of God nobody was killed or seriously injured - and that all four victims could have died.

Stuttard, of no fixed address, admitted arson being reckless as to whether life was endangered.

Patrick Williamson, prosecuting, told the court the children's grandfather and his son, who had been awoken at 6am by shouting from outside next door, dashed upstairs and carried the youngsters into the backyard. The grandfather was terrified as the gas meter was next to the front door and he feared an explosion.

Mr Williamson said Stuttard later sobbed and told officers he was deeply sorry for what happened. He said he did not know the victims.

Kathryn Johnson, defending, said Stuttard accepted and appreciated there could only be one sentence.

He had been at a loss to explain what he did, although he had been drinking to excess and was horrified at the consequences of his conduct. His behaviour had been foolish and stupid.

He was co-operative with officers and made full admissions. Stuttard showed remorse straight away, she said.

Miss Johnson added that the defendant didn't realise people were in the house, especially young children - but had not given much thought as to whether people lived there.

After the hearing, station officer Dave Jackson, from Burnley Fire and Rescue, said: "We welcome the judge's decision. It shows that this type of behaviour will not tolerated.

"It was extremely fortunate the occupants in this house had a smoke alarm which activated and enabled them to escape."