Home Secretary Alan Johnson has said he doubts Croydon Council will need extra money to cope with an expected increase in asylum seekers.

He was speaking to the Advertiser at Wednesday's Labour Party annual dinner.

The council says the closure of the UK Border Agency offices in Liverpool means all first-time asylum applicants must report to the immigration offices in Lunar House in Wellesley Road, Croydon.

Last month, the Advertiser revealed how the council believes this could lead to Croydon becoming a magnet for people arriving in this country, adding to the financial burden on services.

Mr Johnson admitted at the dinner in the Hilton, Waddon Way: "I do feel we could have done a better job of consultation with Croydon Council about the changes."

Initially the Border Agency had anticipated between seven and nine extra first-time applicants arriving in Croydon each week.

But Mr Johnson added: "So far the figure is three to five a week."

Mr Johnson also claimed applicants would not stay after registering their application but would return to the areas of the country from which they had come.

He said was keen to meet the council and hear what they had to say, but added: "I think with three to five more coming in a week people would be hard-pressed to say that would make any difference."

Croydon Council leader, Cllr Mike Fisher, said the main concerns centred on the costs of unaccompanied children for which the council were not being compensated, and he fears this will now get worse.

He added: "There is an impact on schools and health services and we don't think Croydon taxpayers should have to finance that because the UK Border Agency's headquarters are in Croydon."