Female inmates will serve their sentences closer to home and will be offered skills to help find work upon their release under new reforms revealed.
Under the proposals, low risk offenders will be encouraged to undertake practical training so they can seek employment following their jail term.
The reforms, unveiled by Justice minister Lord McNally, who is also the minister for female offenders, call for all women's prisons to become resettlement prisons so that women are close to home and are re-integrated into society.
Juliet Lyon, director of the Prison Reform Trust, said: "Trying to improve women's imprisonment would be a waste when the best way to reduce women's offending is to invest in treatment for addictions, mental healthcare, training for work and safe housing away from domestic violence and abuse."
A Ministry of Justice spokesman said: "We treat the security of information very seriously and took immediate steps to recover the data as soon as the loss was reported to ensure that it went no further.
"These types of incidents are extremely rare but this does not mean that we are complacent.
"A thorough investigation was held by the prison who immediately altered their procedures, and further changes were implemented across the prison estate."
The potential damage and distress that could have been caused by this serious data breach is obvious.
Disclosing this information not only had the potential to put the prisoners at risk, but also risked the welfare of their families through the release of their home addresses.
Fortunately it appears that the fall-out from this breach was contained, but we cannot ignore the fact that this breach was caused by a clear lack of management oversight of a relatively new member of staff.
Furthermore the prison service failed to have procedures in place to spot the original mistakes.
It is only due to the honesty of a member of the public that the disclosures were uncovered as early as they were and that it was still possible to contain the breach.
The Ministry of Justice is to be fined £140,000 by the data watchdog after the personal details of all 1,182 prisoners at a jail were mistakenly emailed to inmates' families.
A spreadsheet containing sensitive information including names, ethnicity, addresses, sentence length, release dates and details of the offences by all inmates at HMP Cardiff was sent to three families, the Information Commissioner's Office (ICO) said.
The breach was only discovered when one of the recipients contacted the prison on August 2, 2011 to report they had received an email from the prison clerk about an upcoming visit, which included the file.
The ICO found there was a clear lack of management oversight at the prison, with the clerk working unsupervised despite only having worked at the prison for two months and having limited experience and training.
The Ministry of Justice said Baby P's mother Tracey Connelly will be subject to strict controls and restrictions following her release from prison for as long as is required.
A Ministry of Justice spokeswoman said:
The release of life and other indeterminate sentence prisoners is directed by the independent Parole Board once they are satisfied they can be safely managed in the community.
The IPP [imprisonment for public protection] licence lasts for a minimum of 10 years, and an offender on an IPP licence may be recalled to prison at any time for breaching their licence conditions.
A bidding competition for £450 million-worth of probation service contracts across England and Wales was opened to the private and voluntary sectors by the Ministry of Justice.
Justice Secretary Chris Grayling has said the announcement of four prison closures and two new "super" prisons was part of a "process of new for old in the prison system" aimed at creating more places.
He said a new prison in Wrexham would be Britain's "biggest prison" and would meet the need for capacity in north wales, and a shortage of places in the north west.
Mr Grayling said there was no plan for so-called "titan" prisons, with one single big building holding thousands of prisoners, and added that the new jails would be a spread out over a "campus" of individual blocks holding a few hundred prisoners, with shared facilities.
Juliet Lyon, director of the Prison Reform Trust, has said closing small local prisons and replacing them with super-sized prisons "will not reduce crime or make communities safer".
She added: "The millions secured for new-build prisons could be more effectively spent on robust community service, treatment for addicts and care for people who are mentally ill."
She added: "Smaller prisons tend to be safer and more effective than larger establishments, holding people closer to home and with a higher ratio of prison staff to prisoners.
"Prison ought to be an important place of last resort in our justice system, not a giant economic regeneration or job creation scheme."
Secretary of State for Wales, David Jones, has welcomed plans to build a 'super' jail in Wrexham, north Wales.
He said: "The construction of this much needed facility will bring with it considerable economic benefits for local businesses, and create up to 1,000 employment opportunities across the region.
"It will facilitate the rehabilitation of offenders by making them more accessible to their families, legal advisers and the probation service, enabling a smoother transition back into the community."
The Ministry of Justice has confirmed four 'mini-prisons' – being built to create 1,200 new places at HMPs Parc, Peterborough, the Mount and Thameside - will be accepting prisoners from September 2014.
The confirmation comes as it was announced by the Ministry of Justice a further four prisons are to due close, as it confirmed plans to build two new "super" jails in England and Wales.