The recalculation is based on a new definition of who has died from Covid.
But there will now be a cut-off of 28 days, providing a more accurate picture of the epidemic.
PHE has also argued that there is no straightforward way to calculate coronavirus deaths.
Cumulative deaths from CCP virus in England by date of death using previous methodology (no time limit) and the new measures: time limit of ≤28 days and time limit of ≤60 days or mention of COVID-19 on the death certificate, as 11 August 2020.
The new figure means that Britain now has fewer deaths than India, but is still one of the worst affected countries in the world, and the worst in Europe.
Initially, people in England who died at any point following a positive test, regardless of cause, were counted in the figures.
Amid rising infections, England's chief scientific adviser Chris Whitty warned on 31 July that "we have probably reached near the limit or the limits of what we can do in terms of opening up society", as Boris Johnson conceded it was necessary to "squeeze the brake pedal" on the return to normality. It is understood those deaths will still be attributed to the disease.
It came after researchers criticised "statistical flaws" in the way the deaths are reported across England. "It had become essentially useless for epidemiological monitoring".
Analysis of data in England found 96 percent of deaths occurred within 60 days or had COVID-19 on the death certificate.
All four nations will now share an approach in which they only record deaths as being from Covid-19 if they occured within 28 days of the person's positive lab-confirmed test result.
Now the UK's four chief medical officers have made a decision to use a single, consistent measure and publish the number of deaths that occurred within 28 days of a positive coronavirus test confirmed in a lab, every day.
The article said that PHE simply looked for those "who have ever tested positive". As Covid-19 deaths fall the number of recovered patients, particularly the very old and those with severe underlying conditions are now dying from these conditions and not Covid-19. The government will use the 28-day metric for its planning.
The British government had announced last month that it was going to review the estimates and present a new way of calculating the death toll.
Earlier Government figures said 46,706 people had died in hospitals, care homes and the wider community after testing positive for coronavirus in the United Kingdom, as of 5pm on Tuesday.