Prisons Inspector Anne Owers has criticised the closure of Warrington's open juvenile unit for boys - the only one of its kind in England and Wales.
The Chief Inspector of Prisons, in her report into the under-18s wing at Thorn Cross Young Offenders' Institution (YOI), said the closure was "disappointing and retrograde".
Thorn Cross, a 320-bed YOI, had provided around 60 places for boys under
the age of 18.
The report, which Ms Owers labelled an "obituary", was highly complimentary.
She said: "Thorn Cross juvenile unit was a beacon of good practice working with a small number of young people and preparing them for the transition to life outside prison.
"This is a model that should be built on, not abandoned. To close (the juvenile unit) before there are any concrete plans for alternative open units, and largely for immediate financial reasons, is both disappointing and retrograde."
The report said the unit had always provided a safe and positive environment and had "improved even further". It also said Thorn Cross was the only male juvenile establishment that was assessed as performing well across all the Prisons Inspectorate's four tests: safety, respect, purposeful activity and resettlement.
A YJB spokeswoman said: "The YJB's view is that the unit at Thorn Cross was not viable. It runs counter to the principle of creating links with the young person's home community, and that was part of the reason that Thorn Cross struggled to fill the available places.
"We believe that continuing to purchase places at Thorn Cross represented relatively poor value for money."
She added the YJB was actively looking for new sites, possibly nearer London.
Copyright (c) Press Association Ltd. 2008, All Rights Reserved.
The full article contains 293 words and appears in Press Association newspaper.