Young offenders should be provided with support in education, training and housing through a network of "academies", a panel of experts has recommended.
The panel, which includes former chief prison inspector Lord Ramsbotham and the ex-chairman of the Youth Justice Board Rod Morgan, is calling for government support to set up a pilot scheme in east London.
The academies would be based on the example of the network of 131 "foyers" which provide accommodation and support for homeless youngsters around the UK.
Lord Ramsbotham said that the new academies could provide continuity for offenders aged 10 to 18 before, during and after periods in custody.
A single centre could provide secure accommodation for offenders with custodial sentences, housing for homeless offenders, education, health and social care facilities and supervision for youngsters on community sentences and anti-social behaviour orders.
Lord Ramsbotham told BBC Radio 4's Today programme: "I hope that government will realise that this is an idea for a pilot. Let's give it a go, because what we are doing now is simply not working."
He said that the idea for the academies came from the foyer movement: "When they looked at the reason why so many are reoffending, they found that the one thing that is missing from their lives is consistent support from adults - teachers, trainers, mentors, guides.
"Therefore, they came up with an idea that on one site locally, you should have a foyer for the homeless, places where young people with community sentences and Asbos could come to, classroom education centres, workshops and so on and also a place for people in custody, so they don't get scattered around the country. Local people would get involved in looking after their own."
Young offenders whose criminal behaviour makes them a danger to others would not be offered places in the academies, he suggested. But he added: "With some of them, their criminality is so low that frankly they are not a danger and it makes absolute sense to think about what is going to stop them reoffending - in other words, the consistency of looking after them."
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The proposed academy in east London would provide around 200 places for young people who could be trained in construction and catering skills for the upcoming Olympics, suggested Lord Ramsbotham.
