Tough new measures to curb immigrants' access to housing and benefits have been unveiled by David Cameron.
The Prime Minister used a keynote speech to warn those coming to Britain that they cannot expect "something for nothing".
From next year, arrivals from the European Union face being stripped of jobseekers' benefits after six months.
To stay on the allowance, they will have to prove that they have been actively looking for a job and stand a "genuine chance" of finding one.
Immigrants will also not become eligible for council houses until they have been in the country for two years, with local people given priority.
A new "local residence test" will be introduced this spring via fresh guidance to local authorities.
Immigrants will only be eligible for council housing after two yearsMr Cameron cited figures showing that nearly one in 10 new social lettings go to foreign nationals, up from 6.5% in 2007-08 to 9% in 2011-12.
He restated his view that net migration has to be slashed "radically" from hundreds of thousands a year to tens of thousands.
He signalled action against so-called "health tourism" that could mean non-EU nationals have to prove they hold insurance before getting care.
The NHS will be told to improve its performance on collecting fees due under deals with EU members, Iceland, Liechtenstein and Norway when their nationals are treated in the UK.
On illegal immigration, the maximum fine for companies employing illegal workers is being doubled to £20,000 and taskforces set up to discover any breaches.
The Government also plans to negotiate with other European states about making economically inactive migrants the responsibility of their home countries and limiting the amount of child benefit paid for children living abroad.
The Prime Minister said: "The reality is that you can't control immigration if you have a welfare system that takes no account of who it is paying out to.
"You can't control immigration if you have a healthcare system that takes no account of the people using it.
"And you can't control immigration if you have a housing policy that doesn't take account of how long people have lived and contributed to a local area. Under my direction this is changing."
Immigrants must prove they have a "genuine chance" of getting a jobSpeaking in Ipswich, he attacked Labour for letting immigration get "far too high and badly out of control" and making Britain into a "soft touch".
Downing Street said the measures were designed to reduce the "pull factor" of incentives that encourage foreign nationals to come and settle in the UK.
Health Secretary Jeremy Hunt later revealed that he believes "significantly more" than £200m a year is being lost because most foreign patients ineligible for free NHS treatment are not being forced to pay up.
Hospitals have to chase the payments themselves, making it a lot easier for them to declare patients to be UK nationals and let the state cover the cost, he said.
Mr Hunt also questioned the need to give free access to GPs to tourists and foreign students, pointing out this does not happen in Australia or America.
However, the Government could face a battle in Europe as it tries to limit access to welfare. The European Commission is already warning it will look carefully at the changes.
Jonathon Todd, spokesman for employment and social affairs commissioner Laszlo Andor, said: "The Commission would have to scrutinise those proposals to make sure they were fully compatible with free movement of workers, rights of residence and social security co-ordination."
He insisted that there were already "very strong safeguards" in place, adding: "The vast majority of people who move to another member state do so to work, not to claim benefits."
Immigration is a top concern for voters and Mr Cameron is the latest party leader after Ed Miliband and Nick Clegg to address the issue in recent days.
UKIP leader Nigel Farage, in his spring conference address over the weekend, claimed one of the main reasons for his party's surge in popularity was his willingness to talk about it.
Concerns have been rising amid fears of an influx from Bulgaria and Romania when movement restrictions are loosened at the end of this year.
Mr Cameron's speech came as the UK Border Agency faced renewed criticism for its failure to tackle the backlog of asylum cases.
MPs on the Home Affairs select committee condemned the lack of progress as it warned the backlog would take 24 years to clear.
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