The move could see a dramatic change in the way the youth justice system operates, with the cost of custody being devolved to councils.
Under the pilots, the Youth Justice Board (YJB) and the Ministry of Justice (MoJ) will give groups of youth offending teams (YOTs) potentially millions of pounds from the central custody budget in return for pledging to cut custody over two years.
The consortia in West Yorkshire will be made up of five local authorities, while two pilots will be launched in London; one consortia in the east and another in the west. Birmingham, the largest local authority in England, will undertake the initiative on its own. A YJB spokeswoman said it was in the final stages of negotiations and expected to announce the pilot areas in September.
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