They say vulnerable young offenders could be put at risk if the Youth Justice Board presses ahead with plans to cut the number of beds it commissions from the council-run homes on grounds of cost.
The Secure Accommodation Network said 22 council-run homes had applied for grants for next year - but cost-cutting meant the board would not be able to fund them all, forcing several to close.
"I really do believe there will be some closures," said network chair Roy Walker. "And that will mean that more vulnerable 15- and 16-year-olds will be left in young offender institutions."
New privately run secure training centres - offering education and care to young offenders - are being built, but critics say they will provide a fraction of the number of beds needed to reduce reliance on young offenders institutions and adult prisons.
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