Foreign prisoners will be offered cash to go home

A sweeping range of incentives to persuade foreign prisoners to go home was unveiled last night by John Reid, the home secretary, in an attempt to defuse the jail overcrowding crisis.

Prisoners from countries outside the European Economic Area (EEA ) - which comprises the 25 EU nations plus Norway, Iceland and Liechtenstein - will be offered a package worth between £500 and £2,500 to go home, rather than face detention while they are considered for deportation. Others will be encouraged to serve the remainder of their sentences in jails in their home countries.

"It costs £37,000 a year to keep someone in prison. It's a lot cheaper than keeping them in prison," said one Home Office official.