Police officers called to deal with children as young as 11 who appear to be mentally ill often have "no realistic option" other than locking them up, it has emerged.
Two of the 347 under-18s, who had not necessarily committed a crime, were detained for more than 24 hours, the report on Radio 4's The World At The Weekend revealed.
The law allows police to take people they think are mentally ill and in "need of care or control" to a safe place for a health assessment.
Two forces detained one child each for longer than 24 hours, figures obtained by the programme through Freedom of Information requests showed.
The legislation allows detention for up to 72 hours.
Out of the 42 forces in England and Wales that provided data, 35 held children under the age of 18 in custody under the Mental Health Act last year.
Usually a place of safety for assessment would be a hospital or care home, but police stations are also permitted under the Act.
Health Minister Norman Lamb said the Department of Health is working with the Home Office and police to provide better local services to ensure a "health-based place of safety" is available as soon as possible.
"All services should be working together to minimise the chance that children and young people with a mental illness end up in a police cell," Mr Lamb said.
"Using police cells in this way should happen as little as possible and only where there are circumstances where it is unavoidable or where the person's behaviour poses an unmanageably high risk.
"The Department of Health is working with the Home Office and the Association of Chief Police Officers to develop better local protocols between police and mental health services so that people who are found in immediate need of care and control can get the most appropriate service and, where needed, a health-based place of safety as soon as possible.
"We have invested a total of £54 million over the four years to 2014-15 to deliver better mental health care to children and young people when they experience mental health issues."