The Milton Keynes-based centre, which in May was given 60 days to show the Youth Justice Board (YJB) how it planned to fix its problems, still has significant inadequacies, according to the Ofsted inspection report published this week.
Inspectors found that while good progress had been made in several areas, such as recruitment and vetting of staff, other areas such as management and "helping children make a positive contribution" remained poor.
The YJB has decided, at the request of Oakhill management company G4S, to halve the available places at the centre until further notice. It said G4S's recent purchase of GSL, operator of Rainsbrook STC, brought additional expertise and resources.
A YJB spokesman said: "The YJB is constantly monitoring the performance of the centre, and will continue to monitor the centre closely throughout this period, ensuring the safety of young people placed at Oakhill is a priority."
Further Ofsted inspections are planned for December 2008. The YJB will review the performance of the centre in January 2009.
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