The project, which involves "carefully vetted" inmates, is being given a cash injection by the Department for Digital, Culture, Media and Sport (DCMS) as part of a £1.2 million scheme to help boost job opportunities to offenders.
The Code 4000 workshops will see criminals given training before being allowed to work on real-world projects - and potentially become website developers and be employed by external companies after completing their jail terms.
Neil Barnby, a workshop instructor at HMP Humber, said: "We are constantly seeing success after success. I look back on the years that I have been teaching coding in prisons and can see all the lives I have had a part in changing for the better."
Thanks to its success it will be expanded to HMP Holme House in County Durham following well received workshops at the category C prison in Everthorpe.
Margot James, minister for digital, said: "The Government is committed to stopping the cycle of reoffending and a valuable asset to prevent recidivism is employment.
"Equipping offenders with coding skills will help them into life-changing work and give them a path to a hugely rewarding career.
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"We have a world-leading digital economy and this new funding will help keep people out of prison so they can give back to their local communities as well as be a boost for our tech businesses."
The programme is modelled on the Last Mile project in the San Quentin prison in California, which has helped almost 500 offenders, none of whom have gone on to reoffend.
This compares to the national average re-offending rate in the US of 55 per cent. Reoffending costs the UK around £15 billion a year.
Prisons minister Rory Stewart said Code 4000 was an "excellent example of what can be achieved through education and training in prison".
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