Prison leavers in London should get extra money on top of their discharge grant, an inquiry has recommended. The aim is to reflect the higher cost of living in the capital.
Everyone released after serving a sentence in England and Wales receives the grant, which is a flat £86. The inquiry concluded that this sum does not meet the needs of people trying to resettle in London.
Its report states: “the Government should introduce a London weighting for the discharge grant as soon as possible to reflect the higher cost of living in London.” It also calls on the Mayor of London, Sadiq Khan, to lobby the Government on the issue. The Ministry of Justice should reply by March 2026 with confirmation of plans for a London weighting, the report says.
The London Assembly’s Economy, Culture and Skills Committee produced the report, titled ‘Employment in London After Prison’, in January 2026. The committee has nine elected members, among them Green Party leader Zack Polanski.
Witnesses said the £86 grant “is too low and fails to take into account the significantly elevated cost of living in London, compared to the rest of the country”. The committee called this “all the more worrying”. It had heard that people leaving prison face long waits and serious obstacles in getting benefits.
The report does not suggest how much extra prison leavers should get. It is also unclear who would qualify. The weighting might cover only those released from London prisons, or also Londoners who return home after serving time elsewhere.
Funding, training and day release
The report’s first recommendation calls for extra funding to improve education and training in prisons.
It also wants two London prisons to set up release on temporary licence (ROTL) schemes. Prisoners would then be able to gain work experience on day release. The committee also urges the Mayor to set up his own employment scheme for former prisoners.
Other recommendations include closer alignment between training in London prisons and the needs of the capital’s employers. Prisons and probation should also work more closely with councils and the voluntary sector, the report says.
The committee suggests the Mayor follow Greater Manchester’s example. There, Mayor Andy Burnham has devolved funding for commissioning probation services.
Hina Bokhari, the Liberal Democrat who chairs the committee, said: “The challenge of improving employment outcomes for people leaving prison is highly complex, and is not something that will change overnight.”
She said that employers saw prison leavers as an untapped source of workers, but that stigma often led them to hire other people instead. In her view, former offenders often show greater dedication in work because they see a job as their last chance. She urged the Mayor and the Government to act on the report.
Lower employment rates in the capital
Assembly Members heard that prison leavers are an “untapped talent pool” for London employers.
London’s unemployment rate stood at an estimated 6.8 per cent in December. That was up 0.8 percentage points on a year earlier and well above the UK average of 5.1 per cent.
Prison leavers in London also fare worse. Within six weeks of release, 17.1 per cent are in work, against a national average of 19.3 per cent. Major businesses told the inquiry that stigma among employers was one of the main reasons.
Fewer than one in three Londoners leaving prison have a job six months after release, according to the report. That is one of the lowest rates of any region in England and Wales. The report blamed a lack of support in prison and after release, as well as lasting stigma among employers.
The report echoed criticism from the Chief Inspector of Prisons, Charlie Taylor. He has said London jails fail to use the capital’s many ROTL opportunities.
Jon Collins, chief executive of Prisoners’ Education Trust, gave evidence to the inquiry. He said: “National cuts to prison education have already led to fewer courses and fewer teachers across England, and London is unlikely to be immune. While greater collaboration between employers, prisons and the charity sector would be a positive step, more joined-up working is no substitute for lost provision.”
He welcomed the report’s focus on education and digital learning. He said reversing the cuts was an urgent first step, and that lasting progress would need renewed national investment.
