The young people's charity Rainer is at the forefront of an £8.1m partnership of 59 different agencies it is hoped will help reduce teenage reoffending.
Reset (resettlement, education, support, employment and training) is the largest voluntary sector-led project that has ever tackled the issue.
Many of the initiative's partners are charities, including Centrepoint, the Prince's Trust, Barnardo's and Crime Concern.
The two-year project covers seven local authority areas that contain some of the most deprived wards in the country. It features the development of a specialist accommodation support service for juveniles released from custody.
At present, 82 per cent of prisoners are reconvicted within two years.
It is hoped that Reset, which is funded mainly by the European Social Fund, will bridge the gap between different agencies so that young offenders released from custody are engaged with support services within the crucial first few weeks.
Joyce Mosley, chief executive of Rainer, said: "If we can get Reset right, we could see a dramatic impact on the lives of young people, their communities and the taxpayer."