Migrants will be able to work but not claim benefits, says Blunkett

But union and business leaders have welcomed plans to start a registration scheme for migrants who get jobs.

The government said its approach would open the door to much-needed workers while protecting the benefits system.

The Conservatives said the scheme did not go far enough while the Liberal Democrats said was an over-reaction.

On Monday Home Secretary David Blunkett announced that people from the new EU states would not need work permits but would need to be on a work register.

Labour shortages

Migrants without work would be banned from most benefits for at least two years but those working could take some welfare payments immediately.

Later Tony Blair told a BBC radio phone-in: "If they can't support themselves, they will be put out of the country."

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Britain and the Irish Republic are the only two EU countries planning to give the unrestricted right to work to people from new EU member states.

That had prompted fears there would be an influx of thousands of people.

Traces Union Congress (TUC) general secretary Brendan Barber said he was pleased the government had not issued an "unnecessary crackdown".

He said the UK economy would collapse without migrant workers.

'Tabloid fiction'

"The government is right not to give in to the right-wing tabloids' scare campaign," he said.

Digby Jones, of the Confederation of British Industry (CBI), said the government had "rightly struck a balance between allowing in the workers our economy needs and avoiding the dangers of excessive numbers".

With most other EU nations imposing restrictions, Mr Blunkett said "it makes sense that our approach will not leave us exposed".

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He said using work permits would have risked pushing migrants onto the black market, where they would pay neither tax nor national insurance.

"If the registration scheme shows an imbalance in the labour market we will re-impose restrictions," he said.

The measures were agreed at a hastily arranged meeting last week.

Ministers deny adopting panic measures but shadow home secretary David Davis said there was "chaos and confusion" because decisions had been taken too late.

He predicted there would be large numbers of migrants, which would put "huge pressure" on public services.

Liberal Democrat home affairs spokesman Mark Oaten said the policy should be based on "fact not tabloid fiction".

He said it would be better to review whether controls were needed six months after enlargement.

All existing EU states can impose transitional restrictions for up to seven years on the right of residents of eight of the 10 new EU member states to work and claim benefits.

The restrictions only cover the former communist states joining the EU.