Prison wages 'undercutting' Liverpool businesses claims MP
19 August 2014 Last updated at 23:24 BST
The government is being accused by an MP of undercutting businesses in Liverpool by using prisoners to fulfil contract work.
Some prisoners from HMP Liverpool are employed by One3One to carry out laundry and packing work on contracts in the private and public sector, with an average prison wage of 30p an hour.
Walton MP Steve Rotheram it was "really, really difficult for any legitimate company to compete on a level playing field with prisoners who are paid far less than the minimum wage".
The Ministry of Justice said using prisoners increased their chances of gaining future employment which also lowered the risk of reoffending.