Early release prisoners to be put up in TAXPAYER-FUNDED hotels to ease overcrowding

The announcement comes amid concern about prison space in bail hostels and other community accommodation typically used by offenders.

Mahmood said: “If an offender is at risk of homelessness upon release they will be housed in community accommodation, and we expect to provide housing for the majority of offenders using existing provision.

“But should there not be enough provision, 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.”

Shadow Justice Secretary Edward Argar was keen to know if the Labour Government had established contracts with hotels to accommodate homeless ex-convicts.

Argar asked: “Has the Government, at the current time, contracted any specific hotels for potential use by early release prisoners?”

Responding to Argar, Mahmood replied: “I have authorised probation directors in areas to make appropriate provision if it is proved to be needed.

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“At this point, it is not definite that it will be required. I’ve allowed the provision to be there to make sure that there isn’t a gap in provision for offenders being released under the SDS40 scheme.”

Argar added: “I think she was saying at this time none have been contracted.

“If they are at any point… will she be open and transparent with the House, local authorities and the public about how many, at what point, and, in broad terms, where they will be located?”

Responding to the Shadow Justice Secretary's second query, Mahmood said: “Yes, I will.”

Mahmood's announcement comes as 1,700 prisoners were released from jail early as part of Labour's plan to free up space behind bars.

A watchdog warned it was “inevitable” some of those released would re-offend and return to prison.

Pictures showed inmates walking out of HMP Brixton, Durham and Liverpool, with 400 prisoners leaving London jails alone.

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

Mahmood's decision was made after the Ministry of Justice warned jails were at the “point of collapse”, with Labour opting to reduce minimum sentences from 50 per cent to 40 per cent.

Ministry of Justice 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.