Criminals who apologise to their victims and make amends could escape prosecution under far-reaching reforms that will see offenders routinely confronted by those they have assaulted or robbed.

David Blunkett, the Home Secretary, yesterday set out plans to use "restorative justice" schemes more widely as an alternative to court to save money and ease record prison overcrowding.

The measure - a feature of the youth justice system for several years - was pioneered by Maori tribes in New Zealand and is credited with reducing reoffending rates around the world.

However, the evidence of its success is mixed. One British study found that only around one third of victims felt the offender had really made amends. Some victims said they found a confrontation with the offender "a worse experience than going to court."

Levels of reoffending among those on restorative justice schemes dropped by 25 per cent in one study but not at all in another and some critics consider restorative justice a means for criminals to avoid punishment.

Under the system - which requires the agreement of both sides - offenders attend sessions with their victims and an intermediary.

While there are obvious advantages for the offender - whose sentence may be cut or prosecution stayed - victims must want to take part. Sometimes family members can attend on both sides; occasionally there is a face-to-face confrontation.

The meetings can lead to the offender making reparation, either directly to the victim or to the wider community by repairing property, cleaning premises or removing graffiti. The Home Office says that 75 per cent of victims taking part in existing schemes are glad they did so.

Meetings tend to take place after the offenders have been found guilty and can result in a lesser sentence. However, Mr Blunkett is proposing that restorative justice should also be an alternative to prosecution.

"When used as a diversion from court . . . restorative justice frees up court time for cases that really need it, such as serious and complex cases, or those where the accused pleads not guilty," said a Home Office consultation paper published yesterday. Mr Blunkett denied it would be a soft option and was more than about just "saying sorry".

He added: "Many offenders find it hard to face up to the real impact of their crimes. It provides the victim with an explanation of why the crime was committed - something a prison sentence on its own can never do and can enable victims to move on and carry on with their lives."

The Crown Prosecution Service will be responsible for deciding if the offender should take part in restorative justice rather than got to court.

A pilot scheme will assess whether the system works before it is extended in about three years. It will also consider whether restorative justice is appropriate for sex crimes, domestic violence and crimes motivated by racial hatred.

Paul Cavadino, of Nacro, the crime reduction charity, said: "Restorative justice can have a powerful effect on many offenders, making them face up to the damage and distress which their actions cause to victims."

Rob Allen, director of the Rethinking Crime and Punishment initiative, said: "Getting offenders to take responsibility for what they've done and to put things right makes more sense than simply punishing them."

Oliver Letwin, shadow home secretary, said: "It is of the utmost importance that this should not become a soft option which leads to failure to prosecute serious crimes."

Norman Brennan, chairman of the Victims of Crime Trust and a serving police officer, said: "In my experience, very few criminals show any remorse for their victim or ever ask after their well-being. Most have utter contempt for the victim.

"Most victims would prefer to see burglars and robbers dealt with by the courts and for offenders to be sent to prison. Of course they are going to say sorry if they think it means getting away with it. But in reality the only thing they are sorry about is getting caught."

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