The department's Children and Young People's Unit had promised to overpay YOTs by 25 per cent this year - approximately 30m - in order to cushion the impact of additional crime-reduction requirements on Children's Fund money.
As YOT managers gathered in London for last week's Youth Justice Board's annual convention, the unit suddenly reversed its pledge, throwing YOT budget plans into disarray.
Jon Richards, an area manager for North Devon at Devon YOT, which faces a 120,000 shortfall, said: "If this cut does go through it is inevitable that we would have to lose people."
Other YOTs were holding crisis meetings to work out where the cuts would leave them. Many of the Children's Fund partnerships and YOTs contacted by YPN, however, remained unaware of any reduction.
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