Third sector organisations, such as Barnados, run services for children with emotional and behavioural problems but are facing funding problems in the recession.
Birmingham City Council has cut five per cent or more from its funding to 191 charities and voluntary bodies too.
Charity YoungMinds has warned that drop-in services, counselling and specialist school nurses are often the first things to be cut to save money.
Sarah Brennan, chief executive of YoungMinds, said: “In a period of austerity this is short-sighted and just stores up problems for the future as young people are left without access to early help, meaning mental health problems become more serious and entrenched.
“It is vital that councils and NHS commissioners prioritise funding comprehensive CAMHS services as they begin to set their budgets for next year, to avoid deepening the potential damage that further cuts could cause to children and young people’s mental health.”
A Birmingham City Council spokeswoman said: “We recognise the importance of this service which is why we want to keep as much of our contribution as possible.
‘‘We have secured 90 per cent for this year and no decision has been made about next year,’’ she said.
“However, this must be looked at in the wider context of the council having to save £212 million this year.”
One in 10 children between the ages of five and 16 suffer from a mental health disorder.
Around 25,000 are admitted to hospital every year in the UK due to the severity of their self harm injuries.
Nearly 80,000 young people suffer with depression, of which 8,000 are under the age of 10.