The programme enters its second tranche this week as ministers continue efforts to tackle a prison overcrowding crisis that they say left the justice system on the brink.
But fresh scrutiny has fallen on the policy after a repeat offender released from HMP Wandsworth was accused of carrying out a string of thefts almost immediately after walking free.
Michael Bogle, 38, from Brent, was one of hundreds of inmates released under the first phase of the scheme earlier this month. The former bus driver had served 78 days in prison after breaching a suspended sentence for shoplifting.
Within 24 hours of his release, he was allegedly caught on CCTV stealing from supermarkets in north-west London, according to court proceedings reported by the Standard.
He later admitted four shoplifting offences and was returned to prison.
The case prompted concern from senior Metropolitan Police officers, with Detective Chief Superintendent Luke Williams warning that prolific offenders were being released back into communities despite the obvious risks.
Writing to MPs and councillors, he said the incident highlighted how pressure was being shifted from prisons to frontline policing.
The early release programme was introduced after warnings that prisons in England and Wales were running out of space. Under the scheme, some inmates serving standard determinate sentences are released earlier than previously planned and complete the remainder of their sentence on licence in the community. Those who breach the conditions can be recalled to custody.
The Government says the measures were necessary to prevent a complete breakdown in the prison system.
A Ministry of Justice spokesperson said: "Within weeks of coming into office, the Prime Minister and Justice Secretary took action to keep more of the most serious criminals locked up.
"But we have been honest about the scale of the crisis we inherited in our prisons. If we had failed to act, the police would have been forced to halt arrests, putting communities at untold risk.
"To make sure this never happens again, we are pulling every lever to fix the broken justice system - building 14,000 new prison spaces, with 3,300 already built, boosting victim support funding to record levels, and giving probation the powers they need to put offenders who are released under some of the toughest restrictions to date."
The first wave of releases saw prisoners leave jails including HMP Wandsworth and HMP Brixton as part of a plan designed to create urgently needed capacity across the prison estate.
Ministers have sought to reassure the public that many of the most serious offenders are excluded from the scheme, and that additional safeguards have been introduced following reviews of the policy.
However, cases such as Bogle have become lightning rods for critics, especially in areas like London where police forces and probation teams are handling large numbers of offenders released under the programme.