Benefit support for asylum seekers is to be cut from tomorrow to £5 a day – just over half of what the government says a person needs to live on, according to refugee welfare agencies.

The change means the weekly rate for a single asylum seeker over 25 who is destitute and asks for support will be reduced from £42.16 to £35.13 a week.

At the same time, benefits for asylum seekers who are lone parents with one child is to be frozen at £42.16 instead of rising in line with consumer price inflation, leaving them £2 a week worse off.

The Home Office passed the regulations through parliament in June, allowing them to abolish a higher rate of support for asylum seekers aged 25 and over.

The UK Border Agency said asylum support rates were reviewed "in view of the difficult economic climate". A spokesman said: "Historically, support for asylum seekers has been linked to income support rates. Income support rates are higher for those over 25 and lone parents because they are likely to be living independently. This does not apply to asylum seekers, who typically live in UK Border Agency accommodation and so have no housing costs, or water, gas or electricity bills."

The Refugee Council, Refugee Action and the Scottish and Welsh Refugee Councils said they were appalled by the decision. Donna Covey, of the Asylum Support Partnership, representing the agencies, said: "These are hard times for everybody, but we must remember that many of these people have experienced torture, persecution, war and human rights abuses and most live in already impoverished circumstances.''

She said a more practical solution would be to allow asylum seekers to work.