The money will be spent on constructing five units for young female prisoners at existing adult prisons. This should end the practice of placing young and adult prisoners together.
A Youth Justice Board spokeswoman said: "The units will exist as small buildings separate from the rest of the prison and will be staffed by specially recruited and trained prison officers. There will also be an enhanced proportion of staff to prisoners."
Each unit, which will house about 18 young women, will have a reception, classrooms and vocational training facilities, such as hair salons. The first unit will be at Downview Prison, in Surrey.
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