Inmates at Jersey's La Moye Prison are to have lessons to ensure they have the academic skills needed to get back to work after release.
The report says £2m needs to be spent on the prison
A new Learning and Skills department was set up in the prison after a damning report into the prison in 2006.
The report by Her Majesty's Inspectorate of Prisons said more education was needed to help them.
Prisoners will be assessed on their literary and numeracy skills by Highland College.
They will then be placed on vocational courses.