The official figures showed that there were 80,393 offences recorded by police in 2016/17, an increase from 62,518 hate crimes recorded in 2015/16.
Following the Brexit vote, Police dismissed media claims that there had been a 57 per cent rise in "hate crimes", as the figure related to a rise of just 31 unverified claims made on the True Visions website in a 96 hour period when compared to the previous year.
Analysis of provisional daily data supplied by 38 police forces to the Home Office national data hub between April 2016 and August 2017 showed a spike in daily hate crime after the Greater Manchester attack on 22 May.
Dave Rich, a spokesman for the Community Security Trust (CST), said the increase in reported hate crime was "worrying", adding: "It underlines CST's figures showing anti-Semitic hate crime went up over the same period".
Although hate crimes have shown a significant rise over the past year, they still account for a very small proportion of overall offences - less than 2% of all reported crime in England and Wales.
Jewish leaders have expressed concern over the falling number of prosecutions for hate crime in the United Kingdom a year ago, after the latest figures were revealed during Hate Crime Awareness Week.
The Home Office report suggests that terror attacks on Manchester and London have led to sudden surges in hate crimes. "This pattern is again repeated with the Finsbury Park attack on the 19 June 2017", reports the Home Office bulletin.
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Reported hate crimes based on sexual orientation rose 27% to 9,157 recorded offences, while religiously motivated offences saw an increase of 35% to 5,157.
United Kingdom home secretary Amber Rudd said she was "heartened" that more victims were confident to come forward and report incidents of hate crime, and that police identification and recording of all crime is improving.
"I am heartened that more victims are more confident to come forward and report incidents of hate crime, and that police identification and recording of all crime is improving".
"But no one in Britain should have to suffer violent prejudice, and indications that there was a genuine rise in the number of offences immediately following each of this year's terror attacks is undoubtedly concerning".
The new figures come after it was revealed fewer alleged hate criminals were prosecuted a year ago.
The UK Home Office said it was spending 2.4 million pounds on protecting places of worship, a further 1 million pounds for vulnerable faith institutions and 900,000 pounds to support community projects. In 2016-17, 52 per cent of cases involved "hostility on the grounds of race, religion, sexual orientation, disability or transgender identity".
Mrs. Saunders commented: "Crimes motivated by hate have a corrosive effect on society and it is pleasing to see the courts are using their powers to increase sentences in the majority of cases for the first time".