November 5, 2007: New Report: Economics of Imprisonment

The debate, whether for or against prison, has historically focused on the moral, political and social arguments for sentencing. With the current prison population at a record high, and with further demand for prison places projected, a timely new research report from the Matrix Knowledge Group on 'The Economic Case for and against Prison', provides new evidence on the most effective ways to spend public money.

The objective of the research is to provide an evidence base that estimates the value for money of different alternatives to prison. Value for money models are widely applied in other government sectors, e.g. healthcare, but little has been done in the criminal justice sector. Although a prison sentence can be applied for several reasons, the research focuses on its ability to reduce re-offending.

The analysis demonstrates that more effective community based alternatives to prison for reducing re-offending do exist. The research also shows that where prison is necessary (for example in the case of violent offenders), prison sentences accompanied by training and treatment interventions are more effective than prison alone in reducing re-offending.

Seven alternatives to prison are shown to offer better value for money for the taxpayer when reduced re-offending is the desired outcome. The value for money savings per offender can be significant, ranging from £425 to £88,469 when considering only the public sector costs, and between £16,260 and £202,775 when also including costs to the victims.

According to Jacque Mallender, CEO of Matrix Knowledge Group:

"Economic research of this nature delivers a more complete picture on value for money... “as an independent research company we’re very pleased to have been commissioned to undertake this work. Matrix Knowledge Group prides itself in delivering unbiased and evidence-led support to decision makers to assist them in implementing effective policy solutions. An economic approach is not about minimising cost, it is about getting the most value for each pound of taxpayer money spent.”

 The full report is available online.

Responding to the publication of The economic case for and against prison, Howard League for Penal Reform Director Frances Crook said:

"This new analysis by a group of leading economists makes it clear that prison is not working for you, the taxpayer and law abiding citizen. Community interventions have a far better rate of reducing reoffending and can save the taxpayer up to £200,000 per sentenced offender, when taking in the savings to the public sector from reducing future crime. Surely our politicians must now grasp the nettle, putting in resources and fighting to increase public confidence in 21st century solutions that cut crime and are cost effective, compared to the old fashioned and costly failures of prison."