News of the planned MoJ savings, outlined in leaked documents, comes as the future of the YJB remains in question as the government review of quangos continues.
Some commentators believe the YJB could be scrapped altogether with its functions being taken over by the MoJ in a bid to save money.
However, YJB chair Frances Done has said she believes ministers are aware of the importance of work being done by the YJB and youth offending teams (YOTs), and is satisfied the organisation can become more efficient.
Savings of 25 per cent each year for the next three years have already been outlined, the majority coming as a result of reduced levels of custody, she said.
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