Pay increases for corrections staff from a $1.9 billion Budget boost.
The Government says the funding will go into more than 800 extra beds at Waikeria Prison - and 685 more frontline Corrections staff, including 470 prison officers.
Millions will go into rehab for the 45 percent of prisoners on remand.
Corrections Minister Mark Mitchell says this money will bolster frontline staff and keep Kiwis safe.
"$442,000 of it is going to be transferred from back office and reprioritised to the front line. The other $1.5 billion is new money."
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