Friday, 10 September 2010 00:00
Private sector firms are to be granted the opportunity to invest in the rehabilitation of prisoners through a 'social impact bond', with the potential returns provided by the government if successful.
The scheme, mooted by Labour and now taken up by justice secretary Ken Clarke as a pilot scheme, is designed to cut rates of reoffending, at minimal cost to the taxpayer.
In this 'payment-by-results' policy, investors will only see a return if rates of reoffending decrease by 7.5% or more.
Currently, 60% of prisoners reoffend within a year of being released.