Handing over the supervision of criminals to the private sector "is likely to lead to chaos", the probation union Napo has warned.
Published by BBC News Website 7 March 2011 Last updated at 01:17
Justice Secretary Ken Clarke is considering allowing private firms and organisations which help cut reoffending rates to make a profit.
But Napo said offenders were not a willing workforce and supervising and motivating them was a skilled task.
The government said it was looking at the "best options" to cut reoffending.
It wants to reduce the £4bn prison and probation budget by 20% over four years.
On Saturday, Ken Clarke outlined the government's new payment-by-results approach to the justice system, meaning the government would only pay providers if they reduced reoffending.
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