The commitment was made when the coalition government was formed in May, but six months on child asylum seekers and those awaiting deportation are still being detained.
The group of House of Lords members, which includes Lord Roberts of Llandudno, Lord Dubs and Lord Dholakia, is also calling on the government to ensure child welfare and safeguarding are central to new policies on immigration.
The group's letter stated: "We have an opportunity to restore the reputation of this country for keeping our promises and for protecting children from harm. The time for prevarication is over and the time for action has come."
OutCry, the campaign group led by The Children's Society and Bail for Immigration Detainees, has coordinated the letter.
Penny Nicholls, children and young people director at The Children's Society, said: "The jubilation of the announcement six months ago has been replaced by deep concern that children are still being detained. We urge the government to honour its commitment and to put child welfare and safeguarding at the heart of any new practice."
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