The 48-bed Keppel Unit will offer better targeted education and training - as well as dedicated health care - to 15- to 17-year-old young men at Wetherby Young Offender Institution in West Yorkshire. It is due to open in the winter of 2008.
Rosemary Hartill, YJB Board member, said: "Young people's offending damages communities but the young people are often damaged themselves."
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