[nevdka]

The ultimate goal of prisons is (or should be) to reduce crime. Why not directly incentivise prisons to reduce recidivism? Pay big bonuses if the ex-inmates aren't arrested/convicted/etc in the 3-5 years after they're released.

[dalke]

Or use the money that would go to such a system and instead direct it towards increased social services, to help reduce the number of people who commit crimes and enter the prison system in the first place.

[hugh4]

Yes, that's probably a better way of aligning incentives.

Plus it could be trialled on a small scale at first with just a few prisons. The main thing you'd need to watch out for is that prisons didnt just start working hard to offload their worst prisoners elsewhere.