This circular resulted from the Conservative government's concern for shifting intermediate treatment away from its base in preventive social work toward high-intensity alternatives to residential care and penal custody. The circular was not aimed at involving the established voluntary sector in any major way over a long period of time. However, the larger national voluntary childcare organizations took advantage of the circular and became involved in intermediate treatment. They have also become involved in efforts to establish a custody-free juvenile justice system. Discussions of policy implications and the work of the Rainer Foundation, notes, and 61 references.