The agreement is for up to 23 months and was formalised with the Youth Justice Board for England & Wales today. It follows on from the current 15-year contract, and will begin in April 2013. The agreement is expected to deliver enhanced savings to the YJB of £4.6m from current costs without any deviation from the current service provision.

Medway STC, in Chatham, Kent, opened in April 1998 and was originally designed to accommodate 40 boys, aged 12-17, sentenced to periods of detention. The centre expanded in 2002 to accommodate 76 young people, including boys and girls on remand. G4S has been operating the centre since its opening.

Today's announcement coincides with the publication of a positive report from Ofsted following an unannounced inspection of the centre last November. The report, which rated the centre as 'good' is the first to be produced under a new inspection framework, involving Ofsted, inspectors from HM Inspectorate of Prisons and the Care Quality Commission. The report was also informed by a survey of young people's views, including former Medway residents.

Paul Cook, Managing Director G4S Children’s Services said:

“We have been delighted to reach this agreement with the YJB to continue providing services to young people at Medway STC, while the Youth Justice Board and the Ministry of Justice determine the new strategy for the Youth Secure Estate.

"Today's positive news comes as Ofsted has recognised the good work of our team. Inspectors recognised the excellent arrangements we have in place to help young people develop skills to prepare for adult life and reduce their risk of re-offending. It also noted how Medway is undertaking a number of reparation projects in the community. There were many examples cited of our staff’s professionalism and care and we are pleased that this has also been recognised by the Youth Justice Board in their decision to continue our provision at Medway.

“Medway STC, along with Rainsbrook & Oakhill Secure Training Centres, deliver excellent services with outstanding outcomes for young people with particular focus on improving education attainment and helping young people into further education, training or employment.”