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Prisoners in England and Wales are to work a 40-hour week while in jail, according to plans unveiled by the justice secretary.
Ken Clarke told the Conservative Party conference in Birmingham that he believes prisons are places of "of institutionalised idleness", where getting up in the morning is "optional".
He said that he intends to change the law so the proceeds of prison employment can be used to support funds for victims of crime.
Prisoners will be able to obtain a small stipend of around £10 a week, with the rest of earnings going to victim support groups.
Ministers are also considering building a purpose-built private-sector factory prison where criminals could earn higher wages to further boost the cash generated by the system.
"I want to revive a policy of John Major's last Conservative government and make deductions from the earnings of working prisoners to provide compensation for victims of crime," Clarke told the Birmingham audience.
"In order to raise those funds, we need to instill in our jails a regime of hard work. Most prisoners lead a life of enforced, bored idleness, where getting out of bed is optional.
"If we want to reduce the crimes these people will commit when they get out, whilst boosting the amount that can be provided for victim support, we need as many prisoners as possible to work hard for regular working hours."
Initially it is intended that the cash earned by 500 prisoners working outside of prison will raise about £1.1m a year to victim compensation schemes.
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