Rioters will meet their victims and those affected by the looting and rioting will be encouraged to suggest punishments.
Under the “riot payback” scheme, offenders will be forced to clean up neighbourhoods they destroyed while wearing high-visibility vests, said Deputy Prime Minister Nick Clegg.
"In every single one of the communities affected there will be community payback schemes, riot payback schemes, where you will see people in visible orange clothing making up the damage done, repairing and improving the neighbourhoods affected,” Clegg said.
Victims of the riots will be given the right to confront the perpetrators.
Clegg continued: "I want them to face people like the woman I met on Monday last week in Tottenham, who said to me that she was still wearing the clothes she was wearing when she ran out of her flat before her own flat was burned down.
“The offender who did that, who set fire to that building, should have to face her and understand that there are human consequences."
Clegg was speaking during a Whitehall news conference in which he revealed that the Government will set up an independent panel to give victims of the riots a chance to "have their voice heard".
"It won't be a public inquiry, it won't be established under the Inquiries Act, but it will serve as a way in which victims and communities can have their voice heard," Clegg said.
He continued that he was hoping more research would be done to find out more about "what happened, who did what and why they did it".
Meanwhile, it has been revealed that police could be given new curfew powers to curtail a repeat of the riots.
Home Secretary Theresa May said:
"Under existing laws, there is no power to impose a general curfew in a particular area, and, while curfew conditions can be placed on some offenders as part of their Asbo, criminal sentence or bail conditions, there are only limited powers to impose them on somebody under the age of 16.”
What do you think – Is it a good idea for rioters to meet their victims? Should those who suffered fro the riots and looting be allowed to suggest punishments?