The move follows a report last summer by Parliament’s Home Affairs Select Committee that investigated the over-representation of young black men in the justice system.
The plan proposes introducing a basket of indicators, focused on key areas within the system, to identify where disproportionality is occurring.
The Ministry of Justice will lead the work to tackle the problem in conjunction with the National Criminal Justice Board.
The National Criminal Justice Board brings together key government ministers, the heads of the criminal justice agencies and senior civil servants.
It oversees targets for the criminal justice system, including the youth justice system.
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