In his first interview in the role, Lord James Timpson said something was clearly wrong with the system when 80% of crimes were committed by former offenders.
He said people were leaving jail addicted to drugs, with no qualifications and no hope.
Lord Timpson said: "I think it's failing victims because it's our job to keep the public safe. We want prisons to produce better citizens, not better criminals.
"We need to make sure that when they're released, they're no longer dangerous and the public is safe." His business, the key cutting firm Timpson, is known for employing ex-offenders, who make up more than a tenth of its workforce.
FOCUS
The appointment of a reform campaigner as Prisons Minister is seen as a shift from the Tory focus on prison expansion.
The new Labour government had to release thousands of prisoners early when the number of available places fell below 100 this summer. It has committed to creating 14,000 new prison places but also wants to reduce re-offending.
Lord Timpson spoke to the Mirror in South East London at the HQ of The Clink, which teaches prisoners and ex-offenders culinary skills.
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