It's only for low-security prisoners, and it's an extremely low amount. The reason they do it is to try and give them skills to use once they get out of prison. Wouldn't want them to just go back to committing crimes because they can't provide for themselves, would we?
Nope. It was London from around 1700 onwards, and then New York took over in the 1950s. Nowadays, its London again - although the two cities are constantly competing.
