The review comes as around 1,100 prisoners are to be released in England and Wales in a bid to ease prison overcrowding.

The government has already promised to create 14,000 extra prison places, but has tasked the review with making sure that the most serious offenders can be sent to prison to protect the public, and that the prison estate always has the space needed to keep dangerous criminals locked up.

It will also specifically consider whether current sentencing for crimes committed against women and girls fits the severity of the act, and ask whether there is more can be done to tackle prolific offending.

Lord chancellor and justice secretary Shabana Mahmood said: “This government inherited prisons in crisis, within days of collapse. This review, along with our prison building programme, will ensure we never again have more prisoners than prison spaces.

“I believe in punishment. I believe in prison, but I also believe that we must increase the range of punishments we use. And that those prisoners who earn the right to turn their lives around should be encouraged to do so.

“The sentencing review will make sure prison and punishment work — and that there is always a cell waiting for dangerous offenders.”

The review will examine the tough alternatives to custody, such as using technology to place criminals in a ‘prison outside prison’ and forcing offenders to do hard work in the community that gives back to society.

In developing their recommendations, the independent chair and panel will look at evidence in this country and also from overseas jurisdictions, such as the US, to explore alternative approaches to criminal justice.

Mr Gauke said: “Clearly, our prisons are not working. The prison population is increasing by around 4,500 every year, and nearly 90% of those sentenced to custody are reoffenders.

“This review 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.”

The review will submit its findings in full to Ms Mahmood by spring 2025.