The funding scheme will be led by the Diana Fund's Refugee and Asylum Seekers Initiative, which attempts to change policy to meet international standards on children's rights.
It is intended to help community organisations carry out the same advocacy at a local level.
"The initiative is seeking to ensure the best interests of the children and young people are a priority in both policy and practice at all times," said David Farnsworth, head of the initiative.
The deadline for initial applications is 12 September. All applications will go through an initial assessment against the criteria for assessing grant applications.
By mid-October, successfully short-listed applicants will go through to a second-stage application process.
For more information, visit www.theworkcontinues.org.uk.