A briefing paper by the National Association for Youth Justice (NAYJ), which promotes the rights of, and justice for, children and young people in trouble with the law, raises serious concerns about the consequences of such a move.
The government argues payment-by-results will incentivise provision of services for children in trouble with the law and reduce reoffending.
But the NAYJ paper outlines concerns that applying market mechanisms to youth justice services will have unintended consequences.
It states that payment-by-results will lead to "cherry-picking", whereby services are primarily provided to children most likely to meet to targets.
Children with the highest levels of need – such as serious emotional problems, learning difficulties or those deeply entrenched in gang culture – would be unattractive to contractors because of the risk to the financial return on their investment.
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