Transparency data

Review of youth justice service grant funding formula

In 2022, the Ministry of Justice (MoJ) asked the Youth Justice Board (YJB) to develop a revised funding formula for youth justice grants, recognising the current model had not kept pace with population changes and local needs. The YJB commissioned Economics by Design (EbD) to carry out this review.

• From: Youth Justice Board for England and Wales
• Published: 17 July 2026

Applies to England and Wales

Documents

Review of youth justice service grant funding formula

PDF, 1.67 MB, 106 pages

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Details

Following independent research by EbD in 2022, Ministers decided not to implement proposed changes to the formula at that time. The existing formula for allocating the youth justice grant remains in place.

Key reasons for the decision

When the proposal was revisited in 2025, the YJB advised against pursuing the formula proposed by EbD due to several structural limitations:

• The formula relied on data (from 2022) that is now out of date. This data was also unable to factor in crucial measures like prevention and diversion activity, or local variations in service delivery costs (such as staff wages which vary by geography).
• Because of how the formula was built, it could not be adjusted to fix these issues and a new model would have been required later.
• The original project timeline did not allow for a transparent public consultation or a full impact assessment.
• Implementing the formula risked destabilising local services. Future changes will require adequate notice so partnerships can coordinate budget planning.

Future funding arrangements

Following the publication of the White Paper Cutting Youth Crime, Changing Young Lives, the MoJ will take direct control of youth justice service (YJS) funding arrangements from March 2027, including any future formula development.

About this report

The EbD report was developed in 2022 but was never finalised for publication because the decision was made not to pursue the formula at that time.

It is being published now in its original 2022 state to ensure transparency and to support the MoJ’s consultation on future oversight and funding arrangements for YJSs.

Please note that because this report was never finalised, it contains some formatting issues, and some of the content and language is now out of date.

You can read a summary of the EbD formula, how it was developed, and its specific limitations in the full report.

Published 17 July 2026