Prisoners are set to be released after serving just one third of their sentences as part of new Labour plans to battle an overcrowding crisis.
Under the shake-up, well-behaved offenders can earn their freedom early by completing work, training or educational assignments.
The changes are part of recommendations from David Gauke's independent sentencing review - which will be presented to the Government next week.
The new approach will replace the current automatic early release system where most prisoners are freed after serving 40 per cent, 50 per cent or two-thirds of their sentences.
Shabana Mahmood's shake-up will see well-behaved offenders can earn their freedom early by completing work, training or educational assignments
PA
Instead, a "third, third, third" model will be implemented.
Well-behaved offenders would serve one-third in prison, then a third on "enhanced" licence with electronic tags, curfews and confiscated passports, then one more spent on normal licence - where breaches result in recall to jail.
This approach is modelled on reforms introduced in Texas in 2011 to address their own overcrowding crisis.
The Lone Star State's system allows prisoners to earn earlier parole by accruing "good behaviour" credits through weekday work and maintaining clean disciplinary records.
Justice Secretary Shabana Mahmood and Gauke visited Texas in February to study the reforms, which have been credited with reducing reoffending rates and cutting crime to levels last seen in the late 1960s.
LATEST ON BRITAIN'S PRISONS CRISIS:
- Britain's overcrowded jails are a 'tinderbox' that could ignite at any time, prison inspector warns
- Police cells to be used to hold prisoners as Labour triggers 'emergency measure' in bid to tackle jail overcrowding
- Britain needs 53,000 new prison spaces to keep up with demand - almost FORTY THOUSAND more than planned
Justice Secretary Shabana Mahmood and Gauke visited Texas in February to study the state's reforms
PAThe new model will not apply to all prisoners but targets specific categories serving "standard determinate" sentences, including burglars, thieves, fraudsters and those convicted of assault.
Prisoners on "extended determinate" or "indeterminate" sentences for more serious crimes will likely be excluded.
Sex offenders, terrorists and domestic abusers on determinate sentences may also be exempt from the "third, third, third" approach.
Men's jails across the country are currently operating at 99 per cent of their 89,300-inmate operational capacity, with fewer than 1,000 spare spaces available.
Internal Ministry of Justice forecasts predict jails will run out of space entirely by early next year.
MoJ forecasts predict jails will run out of space entirely by early next year
PAAnd the crisis comes despite Labour introducing an early release scheme last September, which allowed prisoners to be freed after serving 40 per cent of their sentences rather than halfway through.
Gauke's review is also expected to recommend a major expansion of community punishments as alternatives to prison sentences, including a wider rollout of electronic tags and other technology to enforce "house arrest" conditions.
Further proposals include a move to cut down on short sentences of six months or potentially a year.
Such sentences currently offer little opportunity for rehabilitation, with offenders found to have better chances of reform if treated for addictions, mental health issues and chaotic lifestyles in the community.
