Asylum seekers from new EU countries no longer get support

But for the first time they are able to work legally and the Home Office has said they will not lose their right to benefits and housing immediately.

Campaigners had warned the new rules would have left hundreds homeless.

Malta, Cyprus, Estonia, Latvia, Czech Republic, Lithuania, Hungary, Poland, Slovakia and Slovenia have joined up.

The head of the Refugee Council, Maeve Sherlock, said the decision to review cases rather than automatically withdraw benefits and housing appeared to be a government "u-turn".

She welcomed this move and said she was "delighted".

The row seemed to threaten to cast a shadow over celebrations across Europe to welcome the 10 new members.

The National Asylum Support Service (NASS) has instructed accommodation providers not to evict anyone until an "urgent case-by-case" review has taken place, which could last up to two weeks.

A letter, from the Head of Procurement at NASS, seen by BBC News, says in the interim they would "continue to meet agreed accommodation costs".

The British economy is open to those who want to work but not open to those who want to take advantage of the benefit system Andrew Smith Work and Pensions Secretary EU counts down to historic moment

The letter is dated 29 April. A Home Office spokesman confirmed the arrangements adding that benefits would also be paid until the review was completed.

Immigration Minister, Des Browne told BBC Radio 4 on Friday that "no one will be asked to leave their accommodation until they have had a chance to make representations to us."

While Prime Minister Tony Blair welcomed the new members emphatically, others accused the government of introducing last-minute measures.

Earlier on Friday Shadow work and pensions secretary David Willets accused the government of behaving "like a schoolboy with homework he has put off for too long". He said: "They have known about the accession for years.

"This is a classic example of panicking government, making policy on the hoof."

Preventing abuses

Work and Pensions Secretary Andrew Smith said the new Social Security Amendment Regulations would prevent migrants from abusing the social system.

"The British economy is open to those who want to work but not open to those who want to take advantage of the benefit system," he said.

This is a great day for Europe. After war and communist tyranny, the old divisions that scarred our continent are at last gone Michael Ancram Shadow foreign secretary

He said the new rules meant only working migrants would get the same rights as UK citizens.

Mr Smith said it was difficult to tell how many citizens of new member countries would come to the UK, but said the country had the best labour market in the world and it would easily cope with the new influx.

'Good for Britain'

He said: "There are half a million vacancies in our job market and if a Polish radiographer or a Czech plumber want to work here that will be good for them, good for their employers and good for Britain.

"They will add to the country's prosperity by paying taxes and national insurance contributions."

He added that because of free movement within the enlarged EU, people should be encouraged to come and work legally rather than be pushed into the black market.

Shadow foreign secretary and Conservative deputy leader Michael Ancram welcomed the enlargement of the EU as "a great day for Europe".

He said: "This is a great day for Europe. After war and Communist tyranny, the old divisions that scarred our continent are at last gone.

"We are delighted to welcome the 10 countries joining the European Union. As the European Union grows, its diversity of cultures, histories and traditions will grow. Diversity is a strength we should cherish."