The Labour government has been hardening its immigration policies, particularly on illegal small-boat crossings from France, as it seeks to stem the surging popularity of the populist Reform UK party, which has driven the immigration agenda and forced Labour to adopt a tougher line.
As part of the changes, the statutory duty to provide support to certain asylum seekers, including housing and weekly allowances, will be revoked, the Home Office said in a statement on Saturday.
The department, led by Shabana Mahmood, said the measures would apply to asylum seekers who can work but choose not to, and to those who break the law.
Taxpayer-funded support will be prioritised for those contributing to the economy and local communities.
The Home Office says the measures are designed to make Britain less attractive to illegal migrants and make it easier to remove them.
"This country has a proud tradition of welcoming those fleeing danger, but our generosity is drawing illegal migrants across the Channel," Mahmood said.
"The pace and scale of migration is placing immense pressure on communities."
More than 100 British charities wrote to Mahmood urging her to "end the scapegoating of migrants and performative policies that only cause harm", saying such steps are fuelling racism and violence.
Polls suggest immigration has overtaken the economy as voters' top concern.
Some 109,343 people claimed asylum in the UK in the year ending March 2025, a 17 per cent rise on the previous year and six per cent above the 2002 peak of 103,081.
The Home Office said its reforms would be inspired not only by Denmark but other European countries, where refugee status is temporary, support is conditional and integration is expected.
"The UK will now match and in some areas exceed these standards," the department said.
Earlier this year, a delegation of senior Home Office officials visited Copenhagen to study Denmark's approach to asylum, where migrants are only granted temporary residence permits, usually for two years, and must reapply when these expire.
If the Social Democratic Danish government deems their home country safe, asylum seekers can be repatriated. The path to citizenship has also been lengthened and made more difficult, with stricter rules for family reunification.
Among other measures, 2016 legislation allows Danish authorities to seize asylum seekers' valuables to offset support costs.
Britain currently grants asylum to those who can prove they are unsafe at home, with refugee status given to those deemed to be at risk of persecution. The status lasts for five years, after which they can apply for permanent settlement if they meet certain criteria.
Denmark has been known for its tough immigration policies for over a decade, which the Home Office says have reduced asylum claims to a 40-year low and resulted in the removal of 95 per cent of rejected applicants.
Britain's Refugee Council said that refugees do not compare asylum systems while fleeing danger, and that they come to the UK because of family ties, some knowledge of English, or existing connections that help them start anew safely.
Anti-immigration sentiment has been growing in the UK, with recent protests taking place outside hotels sheltering asylum seekers with state funding.
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