The scheme supports the early assessment of young people on first contact with the police, by providing suitably-trained staff who are able to undertake a rapid assessment of health needs.
Staff work in partnership with youth offending teams and police to inform decision-making across the youth justice pathway.
Frances Done, chair of the Youth Justice Board (YJB), said: "I am delighted that £2m is being invested by the government to divert young people with complex needs from the youth justice system.
"Young people in the criminal justice system are three times more likely to have mental health needs than the general population, and the Point of Arrest Diversion scheme offers support at the earliest possible opportunity.
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