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Penal labour in the United Kingdom exists as part of a framework of rehabilitation.
Across all jurisdictions of the United Kingdom, imprisonment with "hard labour" ended through legislation passed in the late 1940s and 1950s, but in general penal labour remains.
Prisons have historically used Incentive and Enhanced Privilege systems, known as IEPs, to encourage prisoners to behave well, and participate in mandatory labour and education, by assigning each prisoner a designation of "standard", "basic" or "enhanced". Since 2019, the UK Ministry of Justice has updated this to a policy of Incentives Policy Framework, with the main difference being that governors are explicitly encouraged to set wages to be differentiated between different statuses - where in the past this practice was explicitly criticised by different inspectorates, because it creates inequalities between different wages for prisoners doing the same work - and are explicitly encouraged to create statuses even higher than "enhanced".[1]
Governors must use their local pay policy to incentivise prisoners, for example by: offering progressively higher rates of pay for Standard and Enhanced prisoners; using bonus payments for achievements or qualifications; rewarding activities which contribute to rehabilitation and personal progress with higher pay; prioritising access to the highest paying jobs for those on Enhanced or above. ... Governors must include at least three incentive levels in their local policy, referred to in this Policy Framework as Basic, Standard and Enhanced. Governors may create additional levels above Enhanced.