The bill contains a series of measures aimed at reducing reoffending and reforming the legal aid system.
Under the changes, it will be an offence to threaten someone with a knife in public or school, and will see mandatory custodial sentences given to 16- and 17-year-olds found guilty of doing so.
It will also mean that young people will only be remanded in custody if there is an expectation that conviction will lead to a custodial sentence.
Meanwhile, children remanded in custody will have to be recognised as looked-after children by local authorities.
Other reforms in the bill include establishing compliance panels to ensure that young people comply with community sentences and making the referral order more restorative for young offenders by increasing the training given to referral order panel members.
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