There were 80,393 offences in 2016-17, compared with 62,518 in 2015-16, the largest increase since the UK Home Office began recording figures in 2011-12. Reports can be made online in just a few minutes.
There were 80,393 hate crimes recorded in England and Wales in the past year, compared to 62,518 the year before.
There was a further increase in recorded hate crime following the Westminster Bridge terrorist attack on March 22.
The BBC's reporting on the statistics described a rise in "hate crimes", rather than "reported hate crime", and did not mention the fall in actual prosecutions.
It also says that police should not question a victim or witness's impression that a crime was motivated by hate or prejudice, and that "evidence of the hostility is not required for an incident or crime to be recorded as a hate crime or hate incident".
Director of Public Prosecutions Alison Saunders said: "The drop in referrals recorded previous year has impacted on the number of completed prosecutions in 2016-17".
"Although improvement in police recording has continued to be a factor over the a year ago, part of the increase since 2015/16 is due to a genuine increase in hate crime, particularly around the time of the European Union referendum in June 2016", the home office report said.
'The drop in referrals recorded last year has impacted on the number of completed prosecutions in 2016/17 and we are working with the police at a local and national level to understand the reasons for the overall fall in referrals in the past two years'.
Provisional figures provided by the police showed jihadist attacks over the summer led to a four-month sustained increase in hate crimes, starting with Westminster attack followed by the Manchester Arena bombing and London Bridge attack on June 3.
As hate crimes are intrinsically linked to someone's identity - race, nationality or faith are the main factors - when these identities intersect it makes certain groups even more vulnerable to attacks, such as visibly Muslim women.
This means that the courts passed increased sentences in more than 6,300 cases.