Between 1960 and 1978, the number of young persons incarcerated increased at a rate almost three times that of the increase in known offenders aged 14 to 16. In addition, the incarceration of young persons between 1971 and 1978 increased at a greater rate than did the number of young persons who were cautioned or found guilty. The act provided for a sequential approach to implementation. However, this approach took little account of interest groups advocating the use of custody. It also failed to account for the powerful inertia supporting ongoing institutional arrangements. Moreover, the law did not change the financial disincentive for local government to take responsibility for juvenile offenders. Furthermore, central and local governments have lacked the political will to reduce custodial capacity. The reform effort has ended with the Government's announcement in October 1980 that it intends to repeal the law's provisions on the sentencing of juveniles to reform schools and detention centers. Data tables, notes, and 38 references are provided.