THE youth justice system stood condemned last night after a damning report into Britain's youngest death in custody called for sweeping changes.

Adam Rickwood, 14, hanged himself with his shoelaces while on remand at the privately-run Hassockfield Secure Training Centre, in County Durham, three years ago.

The teenager had been restrained using a controversial "nose distraction technique", during which he was punched in the face.

The blow left his face "covered in blood" and Adam said he felt his nose had been broken, according to a report by the Lancashire Safeguarding Children Board.

Officials said the restraint technique could be in breach of the European Convention on Human Rights and called for a review of techniques that allow children to be hit in the face.

The long-awaited investigation has increased pressure on ministers to order a sweeping review of the way children in youth custody are dealt with.

Although an inquiry into the use of restraint techniques was ordered by the Justice Department in July, critics say it does not go far enough.

The Safeguarding Children Board is part of a national network set up to look after the interests of young people.

The report calls for:

* Children being sent to secure units no more than 50 miles from their home;

* A review of alternatives to custodial sentences;

* New guidelines on the use of restraint and fresh training for staff;

* New advice to agencies about their "corporate parent" responsibilities;

* A system to ensure children are placed in the most appropriate local unit;

* A protocol that would allow a child's legal team to communicate any fears they may have about a client's state of mind;

* Children in secure units having easy access to therapeutic and mental health services;

* The decision to send a child to a secure unit when a bed is not available being reviewed within three working days.

The board also says: "Identified system failures must be addressed by the director of Hassockfield and senior managers of the operating company, Serco.

"The Youth Justice Board and Ofsted should review Hassockfield and ensure that all identified system failures have been addressed."

It also wants the Government to provide urgent clarification on the legal status of children placed by courts in secure centres.

Children remanded by court order to such centres are classed as "looked after", a status that triggers oversight obligations on social services departments.

Adam, who had mental health problems and suicidal tendencies, had written to his mother, Carol Pounder, 39, saying he would kill himself if he was not removed from the unit.

Mrs Pounder said: "It breaks my heart thinking about what he must have gone through in his final hours."

The teenager was sent to the centre on remand, on July 10, 2004.

On August 8, he had to be restrained after trying to head-butt and bite staff. He received two warnings before "pain distraction" was used.

Staff carried Adam to his room face down to prevent him choking on his own blood. He was found hanged at about midnight.

The report said: "The whole justice system viewed Adam Rickwood as solely a child in need of custody, rather than a vulnerable child also in need of care and safeguarding."

After he was remanded in custody by magistrates, Adam was initially placed in a Lancashire children's home because there were no secure youth places available.

He did well at the home, but was transferred to Hassockfield as soon as a place was ready.

Gill Rigg, chairwoman of the Safeguarding Children Board, said: "There was no mechanism for the court to be told of his progress and asked to adjust its order so he could stay at the home. That might have made the difference."

The reports' findings were not published until an inquest into the tragedy was held, at Chester-le-Street Coroners' Court in May.

After a four-week hearing, the jury made no criticism of Adam's treatment and said there were no system failures at the centre. Jurors returned a verdict of suicide.

The coroner called for a review of restraint techniques, but did not rule on whether they were lawful in Adam's case.

Lawyers acting for his family have applied for a judicial review of the inquest's findings.

Mrs Pounder's solicitor, Mark Scott, said: "The family feels it was an insufficient inquiry because the coroner did not rule on the legality of the use of restraints."

Frances Crook, director of the Howard League for Penal Reform, said: "Our approach to youth justice needs a radical shake-up, and the tragedy of Adam's death highlights many of the problems we face."

A spokesman for the Youth Justice Board said it was looking at the report with interest, adding: "Everything possible should be done to keep young people out of custody."