The department was responding to claims made last week that a baby had been taken into care in Lewisham in south London.
A spokeswoman for the Home Office said no children had been taken into care as a result of a withdrawal of support from failed asylum-seekers under Section 9 of the Asylum and Immigration Act 2004.
Lewisham council also said it was unaware of a baby being taken into care but was looking into the reports.
The British Association of Social Workers has consistently opposed measures in the Asylum and Immigration Act that could lead to the children of failed asylum seekers being taken into care if their families were denied benefits.
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