The European Court of Justice signalled that jobless migrants should be entitled to state handouts if they can prove they came to the UK to work.
However EU advocate general Melchior Wathelet has advised that unemployed migrants should only have to wait three months before they are entitled to social benefits.
This goes against Mr Cameron's promise to refuse benefits to anyone from the EU who has not worked in the UK for four years - the centrepiece of his demand for a return of powers from Brussels.
Last night Ukip warned the renegotiations were "hitting the rocks". Under freedom of movement rules, EU citizens are currently entitled to benefits in the host country. Express.
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