'Brussels bureaucrats are threatening to impose swingeing fines on Britain over the Government’s refusal to hand out billions of pounds in welfare benefits to foreigners.

Ministers have rejected orders from the European Union to hand over Pension Credit, Employment and Support Allowance and other means-tested benefits to migrants from other EU member nations. They fear the move could turn Britain into a magnet of so-called “welfare tourists” and cost British taxpayers around £2.5billion a year to pay for the handouts.

But the European Commission, the EU’s ruling body, yesterday raised the prospect of the UK being dragged before European judges and hit with daily fines until the order is complied with.'

Read more: Britain Faces EU Fines for Benefits Ban on Migrants