The Home Office is understood to be acting after concern was expressed in parliament that the Asylum and Immigration Bill could fall foul of human rights legislation and conflicted with the 1989 Children Act.
The Bill stipulates that failed asylum seekers will not be entitled to benefit, which would mean that some would not be able to look after their children. Social services departments would then be obliged to take the children into care, although no help could be offered to their families.
The Children Act states, however, that any decision must be taken with the best interests of the child in mind and provides for assistance to be given in cash.
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