And a further £21m of funding is also being allocated to provide secure housing and job opportunities for ex- short term prisoners.
A Home Office spokeswoman said: "Each hostel will take about 10 people and they will stay for an average of 12 weeks - although some may stay longer."
After this period they will move onto more permanent accommodation.
Forming part of the new custody-to-work programme, the money will be invested over the next three years and is designed to "provide a bridge between prison and the community" for both short term and long term inmates.
The news followed a NACRO report which called for more government help in resettling short-term prisoners.
Nacro director of policy Paul Cavadino said the custody-to-work programme was a useful step forward but said a great deal more needed to be done. He argued that prisons should set up housing advice centres and job clubs.
Ex-prisoners should also be given priority housing in the same way that other people coming out of various institutions are given.
According to Nacro's report, last year 60,000 people received short term jail sentences, and of these more than 60 per cent of males and 50 per cent of females re-offended within two years of release.
The report argues that short-term prisoners risk losing their homes, jobs and family ties as a result of their imprisonment.
Cavadino said: "Short term prisoners include very persistent offenders who commit much of the crime which cause great distress in local communities. Providing more resettlement help for this group could do a great deal to cut crime rates."
Source
Housing Today
Postscript
The forgotten majority is available, priced £3 including P&P, from NACRO publications. Tel: 020 7582 6500.
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