Businesses could be paid to take on ex-offenders under new plans outlined by the Policy Exchange.

A report by the right-wing think tank described measures which could save taxpayers ‘up to £300m’ and reduce ex-offenders’ likelihood to re-offend.

The group said payouts would go to businesses, public sector organisations and charities to take on ex-offenders, with extra money going to businesses who take on offenders who are ‘most difficult to place’.

Ben Ullmann, one of the report’s co-authors, said the proposals are the ‘key’ to tackling re-offending rates.

“By using the structures already in place for welfare-to-work programmes, the government could take real strides in breaking the vicious cycle of crime and re-incarceration,” he said.

But businesses said the idea is ‘nothing new’. “We already see that with apprenticeships,” said a spokesperson for business lobby group the Federation of Small Businesses (FSB).

“Employers should be allowed to choose the best person for the job – in some cases that may be an ex-offender,” he added.

“A transparent policy should be put in place which indicates the employer is keen to take on ex-offenders. There can be problems where an employer takes on ex-offenders, as other staff may be sensitive and such sensitivities need to be handled by the employer.

“An up-front policy in employment practices within the firm should address such issues.”

© Crimson Business Ltd. 2008