Kent's social services department says the Government has cut funding by too much to take the reduced number of unaccompanied minors into account.
A report to be presented to councillors says that although the number of asylum seekers has gone down, the council's administration and staffing costs have remained static.
And a new ruling means that there must be two qualified staff and an interpreter present when social services are assessing claims by unaccompanied minors. The report describes the financial risks as "considerable".
"The reduction in numbers means that there is insufficient headroom within the grants to accommodate all the legitimate costs of the service," it says. "The reducing numbers are now exposing this pressure."
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