Protesters have called on the Home Secretary Suella Braverman to stop "stirring up hatred and fear".
Weyman Bennett, co-convenor of Stand Up To Racism said the Home Secretary should "put some handcuffs on herself and hand herself in to the nearest police station".
The group of peaceful protesters called for Ms Braverman to "stop the hate" as they heard speeches, sang songs and chanted outside the Home Office in central London.
The Home Secretary is currently on a visit to the Greek island of Samos, and said on Saturday she wants to put a stop to the "nuisance and distress" caused by homeless people pitching tents on public streets.
Writing on X, formerly known as Twitter, she said: "We will always support those who are genuinely homeless. But we cannot allow our streets to be taken over by rows of tents occupied by people, many of them from abroad, living on the streets as a lifestyle choice."
She warned Britain is at risk of becoming like "San Francisco and Los Angeles where weak policies have led to an explosion of crime, drug taking, and squalor".
Speaking at the protest, Mr Bennett told the PA news agency: "If you're a refugee you have a right to claim asylum, if you're homeless and you're freezing to death, a tent is a good idea."
He added: "She should put some handcuffs on herself and hand herself in to the nearest police station."
James Cox from the Public and Commercial Services Union (PCS) said: "It's really important that the people who are doing the work have their voices heard. We want to run an immigration system that cares for the most vulnerable.
"Our members felt strongly that their job in the Channel was to actually rescue people, not to try and create a dangerous environment."
On the Home Secretary's comments on tents in public spaces, Mr Cox said: "There's a political aim to dehumanise people and create a scapegoat in society. These people are the most vulnerable, our aim should be to make sure they can integrate into society."
In a statement, the PCS said the protest was "against the use of scapegoating language by the Government, and in particular Home Secretary Suella Braverman, that is stirring up hatred and fear, creating division and opening the door to racists and the far right".
Separately, Ms Braverman was criticised by former footballer and now TV presenter Gary Lineker after the Home Secretary dubbed a planned Pro-Palestine protest as a "hate march" as it coincides with Remembrance Sunday.