The EU has called for all migrants entering into Britain to be eligible to claim benefits without having to take a British nationality test.
The EU officials have claimed that Britain was the only country within the EU that required immigrants to pass a test of residency, who have paid tax and legally were residing in the country.
EU was insisting that all European migrants should be allowed to claim benefits in Britain.
The demands were part of the continuing row with the Work and Pensions Secretary Iain Duncan Smith who insisted that if there were no test immigrants could enter Britain and start claiming benefits from day one.
Even Home Secretary Theresa May had called for border controls to block European immigrants from flooding Britain.
The EU nations have to follow the freedom of movement directive which lets 500 million people to move freely between states. It is now under review as part of a study into Britain’s relationship with Brussels.
Ms May had revealed that the study would look at immigration controls.
She said the government was looking at the whole area of the abuse of the freedom of movement directive. The issue of free movement would be an issue and part of the review.
Meanwhile Telegraph quoting sources in the EU told that an acceptable solution would be that the UK applies the same criteria as the 26 other member states.
The sources said that there was a lot of progress made. Nobody was suggesting that the UK should pay out benefits to anyone who just turned up. But they should be paying social security to people who've paid taxes.
Last night a spokesman for the Department of Work and Pensions said the EU had no right to interfere in this way and Britain was going to continue fighting it.