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Fewer than a fifth of UK businesses are actively recruiting former offenders despite growing skills shortages, according to new research.
A report has warned that a lack of job opportunities for former prisoners is driving reoffending due to difficulties covering bills after leaving prison.
Research commissioned by DSA Connect indicated that efforts from firms to hire ex-offenders could significantly reduce the costs linked to reoffending.
The figures showed that only 16% of UK business said they have recruitment policies in place to target ex-offenders.
However, around a quarter of employers (26%) said they would feel comfortable employing someone with a criminal record, while 30% said they were indifferent.
More than half of surveyed firms warned that they are experiencing skills shortages.
The research comes amid Government efforts led by former Timpson Group chief executive James Timpson to reduce reoffending.
The findings highlighted concerns that a lack of post-prison employment options leads to reoffending.
The survey found that more than half (52%) of those imprisoned for a second or subsequent offence said they were unable to find a job after their first release.
Of that same group, 61% said they believed the challenge of finding employment contributed to their reoffending.
DSA Connect, an IT asset disposal company which runs programmes to support prisoners in developing work skills, surveyed former prisoners and small and medium-sized UK firms.
Harry Benham, chairman at DSA Connect, said: “Our survey serves as a stark reminder that finding stable and meaningful employment is one of the most powerful factors in helping people rebuild their lives.
“Sadly, these findings show that without urgent measures being taken, we risk trapping people in a cycle of crime and imprisonment.
“It is a fact that, if a person leaving prison has employment, they are far less likely to reoffend and reoffending (according to government statistics) costs the country around £18 billion per year.
“Our new research highlights that particularly when facing a skills shortage, many UK businesses are missing out on valuable employees by not having a recruitment policy to hire ex-offenders.”