Britain is ‘wide open to abuse’ by EU migrants looking to ‘freeload’ on our welfare system, the Foreign Secretary warned last night.

Philip Hammond told MPs that a major reduction in EU immigration was needed to ‘satisfy British public opinion’ ahead of a planned in/out referendum on Europe.

Mr Hammond said Britain had already tightened welfare rules in order to discourage migrants, and would take further domestic measures. But he warned that changes would also be needed at EU level.

Scroll down for video

Philip Hammond told MPs that a major reduction in EU immigration was needed to ‘satisfy British public opinion’ ahead of a planned in/out referendum on Europe.

He told MPs on the Commons European Scrutiny Committee: ‘We are wide open to abuse. We have tightened up some things already and there are going to be more measures that we can introduce to make it more difficult for people from the EU to abuse our system.

‘But there will be some areas where we need changes (at EU level) to change the way the EU rules work if we are to have sufficient impact on immigration levels to satisfy British public opinion.

‘And that is what we want to do – we are politicians and we are getting a very clear message from the public that this is an issue of significant concern to them.’

Mr Hammond conceded that Britain would not be allowed to opt out of the EU’s free movement rules altogether – and said that David Cameron’s negotiations would focus on ‘the art of the possible’.

But he insisted that other EU countries were willing to be flexible because they are desperate to keep Britain in the EU.

Sir John Major (pictured) has suggested that Euroscepticism is slowly fading in the UK

‘I have visited 18 EU states and I am very clear that we will be able to negotiate a significant package of reform,’ he said.

Earlier, Mr Hammond told the Commons: ‘Free movement to work is one of the principles of the EU. Free movement to freeload is not one of the principles of the EU, and Britain is not the only country that is affected by this problem and not the only country determined to address it.’

Mr Cameron has pledged to renegotiate Britain’s membership of the EU ahead of an in/out referendum in 2017 if the Conservatives win the General Election.

Mr Hammond confirmed speculation that the referendum could be held earlier, saying he would like to see it take place ‘as soon as possible’.

The Foreign Secretary has previously indicated he would vote to leave the EU if the referendum were held on Britain’s current membership terms.

But on Tuesday he insisted he was open to changing his mind if the Prime Minister negotiates significant change.

His intervention came as Sir John Major suggested that Euroscepticism is slowly fading in the UK.

The former prime minister, who has been tipped to play a key role in the negotiations, predicts Britain will vote to stay in the EU.