The National Association for the Care and Resettlement of Offenders (NACRO) is calling for increases in government funding to set up mediation centres throughout England and Wales.
In a report published by NACRO entitled Reducing Conflict, Building Communities, the association states that in order to resolve cases, including neighbourhood conflicts, family breakdown and resolution between victims and offenders, mediation centres should be established in all major cities.
A NACRO spokesman says that neighbour mediation is funded by local authority investment.
But he says: "Local authorities are stretched enough and they cannot be expected to fund these projects."
He adds: "Our view is that the Government should commit funds to this as it is cost-effective in the long run."
Rodney Warren, vice chairman at Criminal Law Solicitors Association says that while any attempt at mediation should be welcomed, available funding should be spent on drugs education because "more crimes are committed because of drugs".