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The combination of full prisons and tight public finances has forced the government to urgently rethink its approach.
Top of the agenda for an overhaul are short sentences, which look set to give way to more community rehabilitation. Ask Liz Bates a question about this story The cost argument is clear - prison is expensive.
It's around £60,000 per person per year compared to community sentences at roughly £4,500 a year. But it's not just saving money that is driving the change.
Research shows short custodial terms, especially for first-time offenders, can do more harm than good, compounding criminal behaviour rather than acting as a deterrent. This is certainly the case for Charlie, who describes herself as a former "junkie, shoplifter from Leeds" and spoke to Sky News at Preston probation centre.
She was first sent down as a teenager and has been in and out of prison ever since. She says her experience behind bars exacerbated her drug use.
"In prison, I would never get clean. It's easy, to be honest, I used to take them in myself," she says.
"I was just in a cycle of getting released, homeless, and going straight back into trap houses, drug houses, and that cycle needs to be broken." Eventually, she turned her life around after a court offered her drug treatment at a rehab facility. She says that after decades of addiction and criminality, one judge's decision was the turning point.
???? Click here to listen to Electoral Dysfunction on your podcast app ???? "That was the moment that changed my life and I just want more judges to give more people that chance." Also at Preston probation centre, but on the other side of the process, is probation officer Bex, who is also sceptical about short sentences. "They disrupt people's lives," she says.
"So, people might lose housing because they've gone to prison… they come out homeless and may return to drug use and reoffending." Read more from Sky News:Care homes face ban on overseas recruitmentWoman reveals impact of little-known disorder Bex has seen first-hand the value of alternative routes out of crime. "A lot of the people we work with have had really disjointed lives.
It takes a long time for them to trust someone, and there's some really brilliant work that goes on every single day here that changes lives." It's people like Bex and Charlie, and places like Preston probation centre, that are at the heart of the government's change in direction. :: Watch special programme on prisons on Politics Hub with Sophy Ridge at 7pm.