Low-level criminals could serve their sentences under house arrest as part of plans to free up prison space and ease overcrowing.
A government review, launched on Tuesday, will explore tougher punishments outside of prison while making sure there is space to incarcerate the most dangerous offenders.
It comes on the same day that around 1,100 inmates are due to be freed as part of the government’s policy to free up prison space.
The review will look at using technology to place criminals in a “prison outside prison” and forcing offenders to do work in the community to give back to society.
Punishments outside prison could involve using wristwatches or apps that “nudge” offenders to ask if they have complied with licence conditions, in addition to sobriety tags or home detention curfews.
“We have an opportunity now to reshape and redesign what punishment outside of a prison looks like,” justice secretary Shabana Mahmood said.
A senior prison service source said: “We are particularly interested in nudge technology, like a wristwatch that says: ‘Have you got in touch with your probation officer? Have you turned up at your mental health treatment appointment?’ They’re not things that restrict your liberty, but they are very helpful in terms of behaviour compliance and nudge compliance.”
Community alternatives and fines instead of prison time will be examined, as will the impact of short custodial sentences.
Ms Mahmood said the plan must “maintain the confidence of the public”, telling BBC Radio 4’s Today programme: “People still have to know that you are being punished for breaking the laws of our land, even if you’re not serving time in custody.
“There are real consequences that you really feel the loss of your liberty still.”
The government is looking to foreign jurisdictions for ideas about how this could work, such as in Texas, where authorities have used good behaviour credits.
The review will also consider whether more can be done to tackle prolific offending and crimes committed against women and girls by drawing sentences that reflect the severity of the act.
Ms Mahmood said: “We want the review to consider the broader framework when it comes to sentencing, particularly because in order to meet our commitment on halving the levels of violence against women and girls.
“Obviously, sentencing time in prison has a role to play, but prevention has a big role to play as well.
“I would fully be expecting them to be looking at sex offenders and sex offences within the scope of this review. ”
In July, the Ministry of Justice announced plans to temporarily reduce how much of their sentences inmates must serve behind bars from 50 per cent to 40 per cent as the department warned overcrowding had pushed jails to the “point of collapse”.
The first release of around 1,700 prisoners from jails across England and Wales started on September 10. The latest tranche, starting on Tuesday, has expanded eligibility to include those serving sentences of five years or more.
The government has committed to creating 14,000 additional prison spaces on top of the 89,000 prison spaces that currently exist.
The findings of the sentencing review will be submitted by Spring of next year, with the results of the review expected to take effect by March 2026 at the earliest.
David Gauke, who is chairing the review, said it will “explore what punishment and rehabilitation should look like in the 21st century, and how we can move our justice system out of crisis and towards a long-term, sustainable future.”
In 2019, when he was justice secretary, Mr Gauke argued that there is a “very strong case” for abolishing jail terms of six months or less, with exceptions made for violent and sexual crimes.
The cost of punishment outside prison is estimated at around £5,000 annually per person compared with more than £50,000 to imprison someone for a year
