Of those surveyed, 61% were sleeping rough

The report, by six refugee charities, says the policy causes "desperate suffering" and "unnecessary distress".

A survey of 101 asylum seekers refused support found 61% were sleeping rough and 70% did not have regular food.

But the Home Office said there was "no evidence" the rules had led to a significant increase in rough sleeping.

A further 57% of those surveyed said their health had suffered.

Section 55 of the Nationality, Immigration and Asylum Act denies support to those who fail to lodge asylum claims as soon as they arrive in the UK.

People who have fled serious oppression should not be left hungry and homeless Refugee Council chief executive Maeve Sherlock

The Home Office says it deters illegal immigrants from claiming asylum, without penalising genuine claimants.

But the six charities - the Refugee Council, Refugee Action, Scottish Refugee Council, Welsh Refugee Council, Refugee Arrivals Project and Migrant Helpline - are calling on the Home Secretary, David Blunkett, to scrap Section 55.

They also revealed "serious flaws" in the system, saying the authorities reversed two out of every three rulings made under Section 55 when one of the agencies intervened on behalf of asylum seekers refused support.

It is time to scrap this unjust and inhumane law once and for all Refugee Action chief executive Sandy Buchan

Refugee Council chief executive Maeve Sherlock is calling for a government inquiry to "uncover the full extent of the problem".

"With each fresh report evidence mounts of the devastating impact of this draconian policy," she added.

"People who have fled serious oppression should not be left hungry and homeless."

Refugee Action chief executive Sandy Buchan added: "Section 55 is not only breaching the human rights of vulnerable people, it is causing unnecessary costs and delays which further undermine the efficiency and credibility of the asylum system as a whole.

"It is time to scrap this unjust and inhumane law once and for all."