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Security firm G4S has been awarded its first Government contract since the 2012 Olympics and Paralympics security fiasco to continue running a centre for young offenders.

G4S Care and Justice Services will continue to provide services at Medway Secure Training Centre in Kent for a further two years after securing a contract extension.

The announcement comes after the firm revealed a bigger-than-expected £70 million hit on its Olympics contract for failing to provide all of its 10,400 contracted guards.

Located in Chatham, Medway opened in April 1998 and was originally designed to accommodate 40 boys but it expanded in 2002 to accommodate 76 young people, including boys and girls.

Justice Secretary Chris Grayling has unveiled plans to shake up youth custody in Britain, which would see "secure colleges" set up in a bid to improve the education of youth offenders.

Paul Cook, managing director G4S children's services, said the centre delivers "excellent services with outstanding outcomes for young people".

The agreement extends the 15-year contract, in place since the centre opened, by 23 months and was agreed by the Youth Justice Board (YJB) for England and Wales. It is expected to save the YJB £4.6 million.

The announcement comes as Ofsted published a positive report 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 contract is the first to be signed since last summer's security shambles, which left the Government to step in with military personnel. Two G4S directors resigned in the wake of an independent review into the company's botched London Olympics contract, when the group only fulfilled 83% of contracted shifts.

The Press Association, photo by wstryder