Under the arrangements, YOT partnerships will work together to objectively reflect on and review local youth justice provision and practice.
The process will run alongside a streamlined inspection process by HM Inspectorate of Probation (HMIP), with the number of YOTs subject to full inspections falling from more than 50 a year to just six from next month.
Around 20 YOTs will be subject to a short HMIP "screening exercise" each year, but the vast majority will not be inspected.
John Drew, chief executive of the Youth Justice Board, said peer review represents an important shift away from public inspections and the potential for the "naming and shaming" of YOTs.
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