Despite another court setback, the home secretary has pledged to press ahead with a "fair but robust" asylum system.

The Court of Appeal decided on Tuesday to reject a government appeal against an earlier ruling that overturned tough new rules denying benefits to asylum seekers who delayed their application.

Government legislation had prevented asylum seekers from claiming cash for food and shelter if they failed to apply for asylum immediately on arrival in the UK.

But after the legislation was effectively dismantled by the High Court, David Blunkett attacked judges for ignoring the will of parliament and rendering his tough new policy "unworkable".

However the latest ruling, set out by Lord Philips, means that there will be no need to radically change the operation of the new asylum policy.

Asylum seekers who arrive by air will first have to satisfy Home Office officials that they had "good reason not to claim asylum at the port of arrival".

"If they do so they will be likely to receive support. If they do not, the secretary of state will have to consider whether their vulnerability is such that it is necessary to grant them support in order to avoid the infringement of their rights," said Lord Philips.

Although the government's appeal was dismissed, Blunkett said he was vindicated by the ruling.

"I am very pleased that the Court of Appeal has found in my favour on the crucial points of law. This will enable the government to operate the fair but robust asylum support system for which parliament legislated last year," he said.

The Home Office said that it had already made changes to its procedures "to ensure that individual cases get full and fair consideration".

But the Conservatives said that the government's asylum policy should be "scrapped and replaced with a quota of genuine refugees".

"This will require renegotiation of or withdrawal from international agreements. Conservatives will face up to this task; the question is whether the government will," said shadow home secretary Oliver Letwin.

Liberal Democrat spokesman Simon Hughes said the court ruling was "a victory for justice and common sense".

"It is completely unacceptable for people to be left destitute in the fourth largest economy in the world. The way that we treat the 'strangers at our gate' is a key test of our civilised values," he said."The Home Office must now change the rules so that asylum seekers are given a reasonable timescale in which to claim asylum."

Also on Tuesday, ministers announced a new fast track pilot scheme aimed at slashing the time taken to process asylum claims from arrival to removal.

Beginning in April, up to ninety asylum seekers at a time with straightforward claims will be detained throughout the process, providing they meet the detention criteria. This will enable unfounded claimants under the scheme to be removed from the UK in about a month.

"We are continuing to drive forward our radical programme of asylum reform, building on the most successful elements of our strategy," said immigration minister Beverley Hughes.