This article offers an analysis of the recent fall in youth custody in England and Wales. It argues that parallels can be drawn between the present period and the decline in child imprisonment during Margaret Thatcher’s premiership in the 1980s. In particular, increased diversion and a depoliticization of youth crime have contributed to a more tolerant decision making within the court arena. Some remarks on the implications for an understanding of the punitive turn are offered and an assessment of the prospect for future trends is provided in the light of the riots of August 2011.