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He added that £245 million a year is spent on detaining 16,000 offenders, who need to be educated whilst in detention, to use the time "sensibly".
Secure colleges are to be considered in a bid to improve the education received by young offenders.
A single mother has called for a complete overhaul of the youth offender system, Asher Nardone faced years of anti-social behaviour.
Today Justice Secretary Chris Grayling will announce proposals for "secure colleges" which, he hopes will help re-introduce ex offenders into mainstream society.
The Government is releasing plans this morning for "secure colleges" for young offenders.
It is hoped the new plans will stop young offenders from re-offending.
Former youth offender-turned mentor Arun Eaton spoke to Daybreak, he said that whilst he was on remand he was unable to do any courses that would help him enter mainstream society with a job.
Justice Secretary Chris Grayling said there is too much re-offending because teenagers do not have the skills to form a new life, or get a job, when they leave.
Half of the 15 to 17-year-olds in custody have the literacy levels of a seven to 11-year-old, with most of them having been excluded from school at some point.
- The average cost of a youth custodial place is £100,000 a year
- Over 70 per cent of young offenders who leave custody reoffend within a year, compared to just under 50 per cent of adults leaving custody
- In the 12 months to June 2012, more than 3,500 of all young offenders sentenced received a custodial sentence
- In 2012/13 the Youth Justice Board expects to spend approximately nearly £250 million on the detention of young offenders
Chris Grayling has recommended new models for detention centres in an attempt to help young offenders to "turn their backs on crime for good".
The Justice Secretary will announce proposals on secure colleges today, aimed at providing education to those in a period of detention.
Justice Secretary Chris Grayling will today announce proposals to reform young offenders institutes by putting education at the heart of them.
Secure colleges will be considered, "providing education in a period of detention".
According to Mr Grayling, there is too much re-offending because teenagers do not have the skills to form a new life, or get a job, when they leave.
The green paper - Transforming Youth Custody: Putting Education at the Heart of Detention - is published today.