The Home Office is at the centre of a row over plans to take the children of asylum seekers into care.

It was revealed at the weekend that under proposals to be set out in the Queen's Speech on Wednesday, the children of asylum seekers could be taken into care as part of efforts make their parents return home.

When a parent loses their claim for asylum they will be offered a paid flight back to their country of origin or face having their benefits and children removed.

The legislation is estimated to affect around 2000 people.

"The policy is not designed to make families destitute and we do not believe many, if any, people would put their children in this position," said a Home Office spokesman.

"It is designed as an incentive for people to return voluntarily before removal is enforced. In rare cases where it is necessary to end support we would not want children to be made destitute as a result of the actions of their parents so provision would be made to take them into care."

Home Office officials took the unusual step if issuing a clarifying statement that defended the move, arguing Britain had a limited number options.

It could abandon asylum restrictions, send people to secure removal centres or organise their removal with a support system for their children.

"The first choice would lead to no asylum and immigration policy at all. The second choice, to the continuing outcry against increasing the use of secure removal centres for children," said a statement.

"The third is the only logical way of dealing with people who have no right to be in the country and therefore no right to public funding or accommodation but who are simply refusing the organised offer of a paid return home.

"There is nothing draconian about this. It is a logical outcome of a managed migration policy which offers a welcome to those who have a right to be in this country.''

John Denham, former Home Office minister and chairman of the home affairs select committee, gave a cautious reaction to the announcement.

"Faced with that choice, families might disappear and leave their children in care, thinking that may be the better option, because at least the children would get to stay in Britain and perhaps the adults would get to stay here, albeit working illegally," he said.

But the idea drew a strong reaction from human rights groups such as Liberty, which said the move would face legal challenges under the Human Rights Act.

"Breaking up families harms children and should be done only when there is absolutely no alternative," added Maeve Sherlock of the Refugee Council.

"The government should abandon this plan and work instead to improve the efficiency and effectiveness of the asylum system."