At least £29 million will be made available over the next three years for restorative justice - the process of bringing those whose lives have been ruined by crime or conflict together with those responsible for the harm.
A recent study by the Ministry of Justice (MoJ) linked the conferencing process with a 14% cut in re-offending, while 85% of victims who took part said they were satisfied with the experience.
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For the remaining six months of the current financial year, £5 million has been provided for restorative justice, of which £3.85 million will be distributed to PCCs.
A further £10 million is earmarked for 2014-15 and at least £14 million has been set aside for 2015-16.
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Gaynor McKeown, lead on restorative justice at independent charity Victim Support, said: "Victims tell us that they want to see offenders punished, but also they don't want to see their offender commit another crime.
"Our work shows that when restorative justice is planned around the victim's wishes, it helps them move on with their lives, and can reduce crime by getting offenders to appreciate the impact of their actions on others."