A two-year programme, which starts in July, will test various methods of helping 15- to 18-year-olds into long-term work or a place at university.
The projects, RESET (Resettlement, Education, Support, Employment and Training) and LAC (Looked-After Children in Education), are being backed by 4.5m from the European Social Fund. A further 4.5m has been raised from organisations including the Department for Education and Skills and the Prison Service.
Colin Rees, director of policy and development at Rainer, said the projects aimed to co-ordinate agencies so young people have "seamless" support.
"The Government has been struggling with both these areas for some time," he said. "Lots of money has gone into this, but we've still got 84 per cent of young offenders reoffending within two years of release and a low percentage of care-leavers going on to further education."
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