Charities that run prisons should have their charitable status revoked, according to Frances Crook, chief executive of the Howard League for Penal Reform.

Speaking at a Labour Party Conference fringe event on ‘Who should profit from the penal system’, Crook said: “Punishment should not be for sale, it should be the realm of the state only. Solitary confinement, physical restraint – these are not decisions that should be made by someone who makes a profit or who is fined if they don’t get people to do what they want.

“It is unacceptable for charities to get into bed with the private sector to give a cloak of respectability to their bids. Those that do should have their charitable status taken away from them. Inflicting punishment is not charitable.”

Charities have been involved in the management of jails since 2010 after Turning Point and Catch22 won a £415m contract in partnership with Serco to run a new prison at Belmarsh West, London until 2037.

At the time, the Howard League and Navca met with the Charity Commission to ask that it rule, under charity law, that charities cannot run prisons. However, following a conversation with Turning Point and Catch 22 about the nature of their involvement in the contracts, the Charity Commission said it was “satisfied that both charities are acting within their objects in these arrangements”.

Payment by results is 'nonsense'

Crook also used yesterday's debate as an opportunity to attack the system of payment by results for justice services, describing it as “nonsense”.

Using the example of a prolific burglar who has recently been released from prison, she said: “You come out of jail, you’re sofa-surfing and you’re on drugs, but you clean yourself up, get a job and get a girlfriend. Who should be able to make money out of you? Public service is something which does great good and which we should value. If you introduce profit into public service it changes everything.”

The first trial of payment by results for justice services was launched in September 2010 and sees St Giles’ Trust working with 3,000 inmates at Peterborough Prison. Private backers have provided £5m of funding for the scheme in the form of social impact bonds. If successful at preventing re-offending, these investors will receive up to £8m in payments from the government and the Big Lottery Fund.