The first year evaluation of the Children in Trouble Project was published at the National Children's and Adult Services Conference last week.
The project is a joint initiative between the Local Government Association and the Howard League for Penal Reform.
Three pilot projects have been running since 2007 and include an accommodation support service, a restorative justice programme and an intensive fostering scheme.
However, the report says that agencies must match up their priorities to cut the number of young people in custody. It says the police's "offences brought to justice" target is at direct odds with the children in trouble target to bring down the use of custody for under-18s.
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