The Government is afraid allowing asylum seekers to work will “worsen the housing crisis”, it is claimed.

Last year, the secretary general of the Department of Justice warned a Supreme Court ruling, which would allow 6,000 refugees to work in Ireland, could result in many asylum seekers leaving direct provision centres.

They could then enter the crowded housing market as the State struggles to keep a lid on the homeless crisis.

In response to the ruling the Government created a scheme that meant asylum seekers would need to pay up to €1,000 for a work permit, and find a job that pays at least €30,000 a year before being able to work in Ireland.

The Sunday Times reported the Department of Justice feared removing of the ban could result in an exodus of refugees from direct provision centres, worsening the housing epidemic.

It has also emerged the State is concerned with how it will cope in the coming years after committing to take in a further 4,000 refugees amid a homelessness and housing crisis.

In recent years, 2,000 asylum seekers have entered the country under the Irish Refugee Programme.

Labour Senator Aodhan O Riordain slammed the Government following the revelations.

He said: “It’s an insight into the mindset of the Department of Justice who are completely incapable of dealing with this issue in a compassionate manner.

“They approach every issue with a security mindset and this is no different.

“They are obsessed with the concept of a ‘pull factor’, from my experience as a Minister of State in the same department.

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“I will be one of the voices within Government arguing for a harder border because of the potential increased flow of migrants and asylum seekers.”