Criminal justice minister David Hanson has rejected two key amendments to the Criminal Justice and Immigration Bill that were made for this purpose.
The first would have stopped young people being sentenced to custody unless they had first received a community order with intensive supervision and surveillance.
The second would have introduced a custody threshold that had to be met before a young person could be imprisoned.
David Heath, the Liberal Democrat MP for Somerton and Frome, said: "The aim of this is to ensure that children are locked up only as a last resort for reasons of public protection, except where a mandatory custodial sentence applies."
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