David Blunkett has outlined a two-pronged strategy for dealing with immigration from EU accession countries.

The home secretary told the Commons on Monday that there would be a new worker registration scheme for anyone from the 10 accession states taking up work in the UK.

And there will be a transition period of two years - possibly longer - in which benefits will not be available to workers from the accession countries.

From May this year, workers from the accession states will see the current work permit scheme replaced by a worker registration scheme.

Blunkett said the scheme would allow Britain to continue benefiting from the contributions that immigrants make to economic growth.

He said access to the labour market would be "subject to certain sensible conditions".

The change in policy had been prompted by the changes in the approach to labour rights that other EU countries had adopted over recent months, the home secretary added.

Employers will be required to check for a certificate issued to those who have to register.

Blunkett said the government would "act immediately" if there were any destabilising effects on the UK labour market.  "We will not hesitate to do so if necessary," he warned.

Benefits clampdown

The Cabinet minister also said that there would be tighter rules on accessing benefits for new EU immigrants.

Government departments will bring forward regulations to ensure that income-related benefits, housing support and child benefit are not "abused".

"Those wrongly believing that they can come and move here in order to claim benefits without working should be in no doubt that they cannot," said Blunkett.

"They cannot draw down on benefits without contributing themselves to the rights and entitlements which should go hand in hand with the responsibilities and duties.

"For two years, and possibly longer, we will require accession nationals to be able to support themselves.

"If they are unable to do so they lose any right of residence and will have to return to their own country."

Mixed reaction

Shadow home secretary David Davis said the government had been late in responding to concerns over EU enlargement.

"Britain’s strategy for the free movement of labour, which impacts on British jobs and our public services, should have been clear, consistent, and planned well in advance," he told MPS.

"A large number of people will come to Britain, some as benefits tourists, but most seeking work. This will put huge pressure on housing and our public services.

"The most straightforward and fair method of dealing with this is to use the work permit system, which allows us to control how many people come in, and what skills they bring."

The Liberal Democrats said the announcement was a "knee jerk reaction to tabloid press campaigns".

Party spokesman Mark Oaten said there was "no evidence that there will be a problem with migration or benefit abuse".

However the CBI backed David Blunkett's move.

"Migration makes a huge contribution to the economic well-being of this country.  Britain must send a clear message to overseas workers that their skills will be welcome here," said director general Digby Jones.

"But at the same time firms also want migration to be sensitively managed. They do not want social problems or an overburdened benefits system anymore than anyone else.

"The government has rightly struck a sensible balance between allowing in the workers our economy needs and avoiding the dangers of excessive numbers."