The report, called Time For A New Hearing, is based on an international comparison of how young offenders are dealt with and found that restorative justice conferences are more effective than courts in reducing reoffending.
They also save money in court time and the cost of custody as well as proving more effective in helping victims deal with their ordeal.
Compiled by human rights group Justice and the charity The Police Foundation for the Nuffield Foundation's Independent Commission on Youth Crime, the report also calls for an end to children and young people appearing in adult courts.
Under its proposals, restorative youth conferences would deal with cases where the young person has admitted the offence. Youth courts would be retained to deal with contested cases and serious cases that are currently held in the crown court.
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