The Home Office gave the money to the Youth Justice Board last summer in response to concerns about the low take-up of the orders, which are meant to support people given antisocial behaviour orders (ASBOs).
It was supposed to encourage youth offending teams to put ISO programmes in place, which would prompt magistrates to issue them alongside ASBOs.
"We expected a greater take-up," admitted Vernon Coaker, undersecretary for police, security and community safety at the Home Office, in a parliamentary debate last week.
Only seven youth offending teams have applied for money for ISO programmes from the Youth Justice Board's 45m prevention fund, which will be spent over the next two years.
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