I see your point but it might be more cost effective not to send offenders to prison (the cost is around £40,000 p.p. per year). So maybe pay them the £760 p w. prison would cost and fine them if they do anything wrong. (I am not serious, or at least I didn't think I was ...... )
As for them paying restitution. Most criminals who affect our every day life don't have anything. Blood from stones springs to mind.