Mr Clarke is expected to announce a consultation on reform of the scheme Criminals will only be able to claim compensation for being victims of crime in "exceptional circumstances", under proposals by the justice secretary. Ken Clarke wants to reform the taxpayer-funded Criminal Injuries Compensation Scheme after annual costs trebled to almost £300m since 1997.
He wants to stop criminals claiming for injuries and psychological damage.
Claims for minor injuries under the scheme for people in England, Wales and Scotland would also be restricted.
BBC home affairs correspondent Danny Shaw says ministers believe the scheme is "out of control".
Over the past decade, 20,000 people with criminal records have been paid more than £75m, including a rapist and a person convicted of two killings.
'Mental anxiety'Claims over the past year alone have been made by more than 3,000 prisoners and ex-prisoners.
In one minor injuries case, a claimant received a four-figure sum for "temporary mental anxiety" after being hit over the head with a bunch of flowers.
A claim for compensation by Soham murderer Ian Huntley also drew strong criticism after he was badly injured by another inmate. He was convicted of the murders of schoolgirls Holly Wells and Jessica Chapman in 2005.
However, the Criminal Injuries Compensation Authority said Huntley would not have received a payout under the existing system because of the severity of his crimes.
Criminals will also contribute more towards the compensation scheme through a victim surcharge, under Mr Clarke's proposals. The government hopes that will raise £50m a year.
Currently, only criminals fined as part of their punishment are forced to pay the charge of a £15 flat rate.
Under the new plans, anyone convicted of an offence would have to pay between £15 and £120 depending on the severity of the crime.
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