The money is being handed over to charities The Children's Society and Bail for Immigration Detainees to help them build their case against the government's use of child detention in immigration cases.
The cash will also fund research into the plight of these children, and help the charities to offer legal and emotional support. A priority is to secure early release for children.
Research will look at how many children are actually being detained. The charities estimate about 2,000 children are held each year for immigration reasons but no official figures are available.
Dr Astrid Bonfield, chief executive of the memorial fund, said: "The fund believes all children should be treated as children first and foremost. We have awarded this grant to The Children's Society and Bail for Immigration Detainees to ensure the rights of the child are upheld and protected within immigration."
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