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They demonstrated outside the UK Border Agency’s offices in Dominion Court, Station Road over the cuts by Solihull Metropolitan Borough Council.
The authority is bidding to get half of 16-year-olds to leave foster families for cheaper ‘supported accommodation’.
It admits this will “result in differential and less favourable treatment” for asylum seeking children and “some of the statutory requirements will not be fully met”.
The council is responsible for about 150 children aged 17 and under from countries including Afghanistan and The Democratic Republic of the Congo.
It made the move after the border agency cut the council’s asylum budget by 15 per cent, £1.2m.
The April 8 demonstration was held by the Social Work Action Network (SWAN) and supported by Unison.
Unison Solihull branch secretary Jolyon Jones said: "This is a complicated issue but at its kernel is the issue of racism.
“The government does not believe that the full costs of care for child asylum seekers should be met – this is a racist evaluation.
“There is no evidence that the needs of unaccompanied young people are any the less than UK-born young people."
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