Prisoners could be put up in hotels when they are freed early to ease jail overcrowding, the Justice Secretary said.

Shabana Mahmood told the Commons that inmates who are homeless on release could be temporarily placed in taxpayer-funded budget hotels if there is not enough space in bail hostels and other community accommodation typically used for offenders.

A watchdog warned it was “inevitable” some of the 1,700 prisoners being released on Tuesday from jails across England and Wales would reoffend and end up back behind bars.

Pictures showed groups of inmates walking out of Brixton, Durham and Liverpool jails. Around 400 prisoners are reportedly due to be freed from London prisons alone.

The latest releases are in addition to the around 1,000 inmates normally freed each week.

Ms Mahmood announced plans in July to temporarily cut the proportion of sentences which inmates must serve behind bars from 50% to 40% as the Ministry of Justice (MoJ) said overcrowding had pushed jails to the “point of collapse”.

Telling MPs on Tuesday that the scheme coming into force was the start of the “rescue effort” for the justice system, she added: “I have authorised probation directors to make use of alternative arrangements including budget hotels as a temporary measure, for the cases that we will see in the next few weeks.”

Downing Street said the policy had to be brought in to avoid “unchecked criminality” where the police and courts are unable to lock anyone up because there are no free cells.

MoJ figures showed the prison population hit a record high of 88,521 on Friday, having risen by more than 1,000 inmates over the past four weeks.

Meanwhile it emerged Rishi Sunak ignored calls from Britain’s most senior police officers a week before the election warning him that failure to trigger the so-called SDS40 policy would be exploited by criminals.

A letter obtained by The Times dated June 27, signed by figures including Metropolitan Police Commissioner Sir Mark Rowley and the chairman of the National Police Chiefs’ Council Gavin Stephens, said the overcrowding crisis in prisons was hampering police officers’ ability to do their job as they urged the then prime minister to put the plan in motion immediately because it would take “many weeks to safely implement”.

Chief inspector of prisons Charlie Taylor said the Government “had no choice but to do something” about overcrowding because “the bath was in danger of overflowing, and they either had to turn the taps off or they had to let some water out”.

But he warned it was “inevitable that some of these prisoners will get recalled to custody” and that some will be homeless on release – increasing the risk that they could go on to commit more crimes.

“If people are coming out, they’re not properly prepared, and they’re homeless, then what we’ll see is the danger that they’ll commit more offences, or that they breach their bail conditions, in which case they’ll end up back inside again,” he said.

On Monday, it emerged some victims were not prepared in the wake of their perpetrators being freed early, with The Times reporting hundreds had not been informed.

The Victims’ Commissioner of England and Wales, Baroness Newlove, branded it “regrettable” that some had still not been told this was happening on the eve of the policy coming into force.

There are also fears not all criminals with a history of domestic abuse will be exempt from the policy despite efforts to keep them behind bars.

The Government said those convicted of sex offences, terrorism, domestic abuse and violent crimes would not be freed early under the scheme.

But because there is no single offence for domestic abuse, and only certain crimes like coercive control, harassment and stalking which are specifically linked to this were excluded, meaning other attackers convicted of crimes like threats to kill and actual bodily harm could still qualify for early release.

Domestic Abuse Commissioner Nicole Jacobs – who had called for a blanket exemption for all known perpetrators – said: “There is no justice in allowing perpetrators of domestic abuse to be released early.

“I worry that it might not be possible for every victim to be notified of their abuser’s release and I fear they may be left blindsided, without the time to seek vital support and guidance”.

Rioters are among those who could end up spending less time behind bars as the Government last month confirmed those involved in recent unrest would not be specifically excluded from early release.

However, those convicted of serious violence and serving sentences of four years or more will not be eligible, according to officials.

Mr Taylor’s comments came as he published his annual report, which suggested ministers will not be able to build enough prisons to fit all criminals set to be jailed in future unless they overhaul sentencing rules.

His report said: “With the number of prisoners projected to grow by as much as 27,000 by 2028, it is unlikely to be possible to build enough new accommodation.

“Alongside decisive short-term action, there is a pressing need for a much bigger conversation about who we are sending to prison, for how long and what we want prisoners to do while they are inside.”

The report also detailed the “desperate” crisis of violence and drug use behind bars, as well as the lack of available rehabilitation that would keep people from reoffending.

Charities said the early release scheme would only “buy a little time” and would not provide a lasting solution in the face of “brutalising” conditions.

Andrea Coomber KC, chief executive of the Howard League for Penal Reform, said prisons and probation needed to be completely reset after she described the “woeful education and training” for inmates and “squalor, self-harm, drugs, violence and unmet mental health needs, all in the midst of severe overcrowding”.

Hundreds more prisoners are due to be freed early next month in the second stage of the scheme. But the Government is under pressure to find longer-term solutions to the problem, with prison figures warning without further measures the same problem could be faced in about a year’s time.

A MoJ spokeswoman said: “It is important for offenders to have a roof over their head when they leave prison, otherwise there is a high risk they will reoffend and end up back behind bars.

“That is why the Prison and Probation Service has basic housing for offenders who would otherwise be forced to sleep on the streets with additional ad hoc arrangements only to be used as an absolute last resort.”