Reforms to the working holidaymaker scheme are aimed at making it more attractive to young people from Africa and Asia.

Under the old scheme, holidaymakers had to go home after two years, but the Government has now made the system a route to permanent immigration.

It made the changes after immigrant advocacy groups claimed that the old system was racist because it required a level of self-funding that meant only young people from high-income countries were able to take advantage of it.

About 40,000 people a year came to Britain under the scheme, but 96 per cent were from Australia, Canada, New Zealand and South Africa.

The old programme allowed young people to spend up to 50 per cent of their time doing unskilled jobs, such as restaurant work, that was “incidental to their holiday”. Young people can now work throughout their time in Britain.

They are also allowed to follow a professional career and, after a year, can switch to a full work permit, which allows them to bring over a spouse and children. Permanent residence and then British citizenship follow.

The Government has also increased the upper age limit from 27, so that the age range is now from 17 to 30. People must be able to support themselves for two months, and afford a return air fare. The Home Office has said that there is no limit to the number of visas it will issue.

Migrationwatch, the think-tank, said the changes opened a new route of permanent immigration. Sir Andrew Green, the chairman, said: “It amounts to an unlimited and uncontrolled work permit scheme. Anyone who can assemble funds for two months’ expenses can apply and then disappear as soon as he arrives. The changes alter the whole nature of the scheme and amount to an uncontrolled back door to Britain.”

The Government made the changes to reduce pressure on the asylum system, to curb illegal immigration and to undermine the people-smuggling industry.

The human rights group Amnesty said that another proposed measure to tackle asylum abuse — the cutting of legal aid for asylum-seekers — could put lives at risk. Jan Shaw, Amnesty’s refugee affairs programme director, said that people simply could not prepare their cases in time.

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