New migrants who demonstrate an "active disregard for UK values", possibly including protesting at homecoming parades of troops from Afghanistan, could find their applications for a British passport blocked under new citizenship proposals published today.

But migrants who contribute to the "democratic life of the country" by canvassing for political parties could find the application process speeded up so that it takes one year instead of three.

The proposals unveiled by the immigration minister, Phil Woolas, set out a much tougher regime for the 150,000 people who apply for a British passport each year, using a points-based system for "earned citizenship".

The Home Office consultation paper proposes a new category of "probationary citizen" whose application for a British passport can be speeded up or slowed down depending on the points system.

Family members and refugees will automatically pass the test, but for those who come to work in Britain the speed at which they might get a British passport will depend on their earning potential, special artistic, scientific or literary merits, qualifications, their ability to speak English and how long they have lived in Britain.

In addition, those who demonstrate involvement in voluntary work or other forms of "active citizenship" such as canvassing for political parties or being a school governor could get a passport within a year.

However, those who fail to integrate into "the British way of life" by engaging in criminal or antisocial behaviour could face having points deducted or other penalties. The paper says this includes "circumstances where an active disregard for UK values is demonstrated".

The Home Office would not rule out the possibility that this would include protesting at the return of British soldiers from Afghanistan or Iraq.

Woolas said: "As a point of principle ... if you don't break the law and you are a citizen, that's fine. But if someone is applying to be a citizen to our country we do think that you should not only obey the law but show you are committed to our country. This is what America does, it is what France does it's what other countries do and we think we should do the same."

The Liberal Democrats' home affairs spokesman, Chris Huhne, criticised the idea. "With the proposal that people could be barred for unpatriotic behaviour, it looks as if the government wants to play the thought police. But there should be no question of barring people because they criticise government policy. Democratic values must come first," he said.

The proposals include a new two-stage citizenship test with an early examination of practical knowledge of life in Britain and English language skills, and then at the final stage a more challenging test of knowledge of British history and politics. Those who fail the tests will be given further chances to pass them.

Ministers hope that local authorities will build on the popularity of existing citizenship ceremonies by holding orientation days to encourage integration into the local community.

The new system proposes to counter the effects of the brain drain of skilled workers from the developing world to Britain by rewarding those who are prepared to take their skills and knowledge back home for a time before they become full British citizens.