The government’s flagship probation policy is driving up the prison population and trapping people in an endless cycle of low-level offending, a report has suggested.

As justice secretary, Chris Grayling said radical changes introduced in 2014 would “bring down stubbornly high reoffending rates”.

Five years on, HM Inspectorate of Probation found there had been “no tangible reduction in reoffending” as freed prisoners commit further crimes costing the economy up to £10bn a year.

The government is renationalising the supervision of offenders after private companies failed to properly monitor them.

But the probation watchdog said the long called-for change would not be a “silver bullet” to stop prisoners committing more crime on release.

Grayling's biggest failings Show all 8 1 /8 Grayling's biggest failings Grayling's biggest failings Banning books for prisoners Then Justice Secretary Grayling introduced a ban on sending books to prisoners in November 2013. The ban was later deemed unlawful by the High Court PA Grayling's biggest failings Knocking a cyclist off their bike Transport Secretary Chris Grayling knocked a cyclist off their bike by opening his car door in 2016. The footage was released by the recording cyclist a few months after the incident when Grayling complained about London's cycle lanes Guardian Grayling's biggest failings Train timetables fiasco After an Office for Road and Rail report found that nobody had taken charge during a major change to train timetables that left more than one in ten trains being late or cancelled on Northern and Thameslink, Transport Secretary Grayling insisted he was not to blame PA Grayling's biggest failings Unlawful cuts to legal aid The cuts to legal aid for certain categories of prisoner that Grayling introduced as Justice secretary in 2013 were found to be unlawful by the High Court PA Grayling's biggest failings Private probation reversal Theresa May's government has opted to renationalise the supervision of former prisoners after a part-privatisation program begun by Grayling in 2014 was found to be putting the public at risk PA Grayling's biggest failings Ferry contract for a company with no ferries Grayling handed a £14 contract to Seaborne Freight to deliver goods from Ostend to Ramsgate in the event of a no deal Brexit. The contract fell through after the Irish company that Seaborne was relying on to carry out the shipping pulled out PA Grayling's biggest failings Criminal courts charge In 2015, then Justice Secretary Grayling introduced a policy whereby convicted criminals would have to pay from £150-£1200 towards the cost of their case. The policy was criticised for compelling defendants to plead guilty and led to protests by magistrates. The policy was scrapped by Michael Gove when he became Justice Secretary later that year PA Grayling's biggest failings Cyclists not road users As Transport Secretary, Grayling once failed to recognise cyclists as road users PA

It found that almost two-thirds of people freed from prison sentences of under one year reoffend, and the problem is being worsened by homelessness and difficulties accessing benefits.

A report warned that the introduction of a year’s post-release supervision for all offenders, even those jailed for just weeks, was driving an “expensive merry-go-round” in and out of jail.

Dame Glenys Stacey, the chief inspector of probation, said the changes had increased the prison population amid a crisis with record levels of violence, self-harm and rife drug abuse.

“A good number of people are being recalled to prison because they miss appointments – we saw one individual recalled after three days,” she told The Independent.

“Prisons are spending time and public resource receiving people and releasing them a short time later.”

The government said it would keep one key aspect of Mr Grayling’s Transforming Rehabilitation policy, which extended post-release supervision to around 40,000 extra offenders a year.

Officials hailed the change a “success” when announcing reforms last week, but Dame Glenys said the “one size fits all approach” was causing more people to be needlessly jailed for violating conditions.

She called for a “more tailored approach” that takes into account people’s circumstances, addictions, family circumstances and mental health needs.

“There needs to be a more holistic and system-wide approach for people with chaotic lifestyles and complex needs,” Dame Glenys said.

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“The standard supervision for some of these people is just not enough.”

Analysis by the Prison Reform Trust found that since the reforms were introduced, the rate of people being recalled to prison had risen by 29 per cent for men and 166 per cent for women.

Head of policy Mark Day said: “While the reforms appear to have had no discernible impact on reoffending, recall rates have rocketed, disrupting lives and placing unnecessary pressure on an already overcrowded and overstretched prison system.

“The justice secretary has signalled his willingness to follow the evidence by bringing offender management back into the public sector. He should now follow the advice of his chief inspector by ending the unfair and disproportionate mandatory supervision of short-sentenced prisoners.”

The Howard League for Penal Reform said the changes had “not made the public any safer”.

Chief executive Frances Crook added: “It has trapped tens of thousands of people in the criminal justice system for even longer than necessary. This has blighted lives and put an intolerable strain on prisons, and it should be abandoned immediately.”

Almost one in three people being released from prison are homeless, and 83 per cent of homeless ex-offenders monitored by inspectors committed more crime. Officials believe some are being jailed for stealing food.

The inspectorate said that universal credit can only be claimed after people are released from prison, and with great difficulty if they do not have a permanent address, documentation and internet access.

“The lack of accommodation and money make the first days following release particularly difficult,” Dame Glenys added. “Those leaving custody after a short sentence are very likely to need early help and are likely to return to prison promptly without it.”

Judges and magistrates are not being given reports on offenders before they jail them (Getty)

She called for the government to mount a strategy to tackle the lack of accommodation, barriers to claiming universal credit, and better access to mental health and substance misuse services, adding: “Those things can be looked at regardless of what the government does with the future model of probation.”

The Ministry of Justice has announced a consultation on changes that will see offender supervision handed to the public National Probation Service in spring 2021.

Under the new model, 11 probation regions across England and Wales will commission private companies to provide unpaid work, substance misuse programmes, training courses, community service and housing support.

David Gauke has called for prison sentences of under six months to be scrapped in favour of community punishments, but Dame Glenys said the measure would be pointless if supervision and rehabilitation is not improved.

Inspectors found prisoners were being poorly prepared for release in some areas, and the National Probation Service was failing to provide court reports on offenders’ health and circumstances.

“It is plainly unacceptable for magistrates and judges to sentence a person to custody without the benefit of essential information and advice on why they offended, their current circumstances and any alternative sentence options,” Dame Glenys said.

“A system-wide approach as well as much more purposeful probation supervision is needed. Without it, individuals are locked in an expensive merry-go-round of criminal justice processes and the public are left at undue risk.”

Mr Gauke said: “I am determined to have a more effective probation system that commands the confidence of the courts, rehabilitates offenders and ultimately better protects the public.

“That is why just last week we set out our future vision for probation – bringing all offender management under the National Probation Service and harnessing the skills of voluntary and private providers to boost rehabilitation.