New laws to reduce the use of short prison sentences and toughen up community punishments are expected to be introduced within weeks.

Ministers are expected to introduce the new legislation to the Commons after the summer recess.

The changes will abolish most short-term prison sentences and introduce an earned release scheme, based on a model used in Texas, where prisoners who demonstrate good behaviour can be freed earlier – while those who disobey prison rules are detained for longer.

This will include some prisoners jailed for violent offences, although those convicted of the most dangerous crimes and for terrorism will be excluded.

The new bill will introduce many of the changes recommended by the independent sentencing review, carried out by former Conservative justice minister David Gauke earlier this year. It represents one of the largest overhauls of sentencing in a generation and marks a cornerstone of the government’s effort to reduce the size of the prison population in England and Wales.

As well as reducing the use of short custodial sentences, the changes will also toughen up community sentences, introducing a wider range of punishments for those serving time outside of prison. This could include bans on going to stadiums to watch sports or music events, as well as restrictions on visiting pubs, and the wider use of drug testing.

Other punishments could include driving and travel bans, as well as restriction zones – confining them to certain areas. Some of these can already be imposed for certain crimes, but the new laws will mean that these could be handed down by a judge for any offence.

Under the legislation, which it is understood will be introduced in September, prison sentences of 12 months or less will be scrapped, except for in exceptional circumstances such as domestic abuse cases. Meanwhile, the length of suspended sentences – where an offender is not sent to prison immediately unless they commit a further crime – will be extended from two years to three.

The justice secretary is believed to have been inspired by the earned release scheme during a visit to the States, where she learned about the model being used in Texas to cut crime and bring their prison population under control.

Shabana Mahmood said that criminals who break the rules “must be punished” and that those serving their sentences in the community “must have their freedom restricted there, too”.

She added: “Rightly, the public expect the government to do everything in its power to keep Britain safe, and that’s what we’re doing.”

A spokesperson for the Ministry of Justice added: “This government inherited a prison system days away from collapse.

“That is why we are building 14,000 more prison places, with 2,500 already delivered, but we know we can’t build our way out of this crisis.

“Without further action, we will run out of prison places in months, courts would halt trials and the police [would] cancel arrests. That is why we are overhauling sentencing to make sure we always have the prison places needed to keep the country safe.”