Speaking at a Conservative conference fringe event on community alternatives to custody for young people, staged by the Transition to Adulthood Alliance, Blunt said more effective community punishments need to be identified.
Describing community payback schemes as a "wasted opportunity", he stressed the importance of identifying new models in order to give the public confidence in their effectiveness.
"It goes into the whole issue of leadership," he said. "If a scheme is effectively led and administered, people will respond.
"If you get a scheme where leaders say that they [the offender] have been working hard and have done more than the minimum work, perhaps you are in a position to knock something off the sentence," he said.
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