Faith leaders responded with anger and distress after Parliament rejected a change in the law that would have made it compulsory for councils to declare whether they had room to house child refugees.

Conservative MP Heidi Allen, moving the amendment, said ministers failed to consult adequately with councils when they shut down the Dubs child refugee resettlement scheme.

Allen's amendment was narrowly lost, with MPs voting 287 votes against to 267 in favour.

The amendment had the backing of prominent Conservative MPs and faith leaders were among those demonstrating outside Parliament, joining celebrities such as actors Juliet Stevenson, Rhys Ifans and Toby Jones.

Commissioner Clive Adams, Territorial Commander for The Salvation Army in the UK and Republic of Ireland said after the vote: 'It is very disappointing that the vote in the House of Commons today has not seen the continuation of a scheme which ensures safe passage to the UK of unaccompanied refugee children.

'These children are incredibly vulnerable, they are on their own, without their parents, fleeing conflict and war torn countries. They are at risk of abuse and exploitation in refugee camps. This vote today can only be described as a tragedy for those children, and we will continue to advocate on their behalf, and call on the Government to continue the support and protection they so desperately need.'

Help Refugees tweeted: 

Campaigners want 3000 children rehomed in Britain. The scheme will shut down this month with one tenth of that number given a place to live in the UK.

Lord Dubs said in a statement issued through Refugees Welcome: 'We came together to write and call our MPs – to ask them to vote on a new amendment that could give hope to the most vulnerable refugee children. But instead of pushing the door open, it's just been shut to thousands of children across Europe who will spend tonight alone and in some of the worst conditions I've seen. I'm devastated. The Britain I know is better than this.

'The Britain I know is made of heroes like Sir Nicholas Winton, who saved 669 children virtually single handed on the eve of the Second World War. I was one of them.'

He pleaded for support for the Alf Dubs Children's Fund.

'Together with Citizens UK's Safe Passage, this fund will seek out safe and legal routes for vulnerable children to find refuge in the UK. Already we have staff on the ground in Greece, Italy and France, working with the tens of thousands of children stranded there.

'Theresa May's government may have failed these children – but we won't give up. You are the Britain that I believe in. An open, welcoming and just country.' He added: 'Each one makes a difference. It tilts the scales of justice towards fairness and compassion.'