Speaking at the second reading of the bill in Parliament, Balls said that he would table amendments to clarify the role of local authorities in providing education for young offenders.
He said that young offenders with statements of special educational needs should continue to receive educational support in custody.
"Local authorities and the youth custody estate will have an obligation as far as possible to continue that special focus on those with learning difficulties while they are in custody," he said.
Labour MP Sharon Hodgson warned that the bill must say clearly that statements will be recognised in prison education.
But Balls was unable to say what his amendments would be. He said the changes would be outlined in the committee stages of the bill.
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