THE SNP is to make a stand against Tory plans to restrict in-work benefits for EU migrants ahead of the in-out referendum on Europe.

Europe and External Affairs Secretary Fiona Hyslop said EU migrant workers make “a big sacrifice” moving to a new country and are “entitled to be treated in the same fashion as home state workers – including entitlement to social assistance and benefits”.

She said: “EU migration is critical to the development of Scotland’s economy, its social fabric and culture. The principle of freedom of movement is a founding principle of the EU and cannot be torn up.

“The Scottish Government does not support measures to restrict benefits purely on the basis of nationality, particularly where people are working and contributing to the benefits system.

“We shouldn’t forget the other side of this coin and the thousands of British people living around the EU who have access to those countries’ benefits system.”

The position, set out in an unreported speech in Dublin last week, puts a clear dividing line between the SNP and the Conservatives on EU reform.

New welfare powers coming to Holyrood in 2017 will let ministers top up benefits hit by Tory cuts south of the border, but it is unclear if benefits for EU migrants could end up more generous in Scotland than England, as the fine detail of the negotiations will be critical. There are currently around 173,000 EU nationals in Scotland.

David Cameron has set out four key areas for renegotiation: protection of the single market and non-euro countries; boosting competitiveness and cutting red tape; exempting the UK from “ever closer union” and more powerful national parliaments; and restricting migrants’ access to in-work benefits and social housing.

The first three appear broadly achievable, but curbing benefits is hugely problematic, as all EU citizens must be treated equally within member states, and applying different rules to migrants would be illegal discrimination.

To get round the problem, UK ministers are considering restricting benefits for UK citizens as well as migrants, but that would be deeply unpopular.

Cameron had hoped to sell the reforms to EU leaders ahead of a European Council meeting on December 17, with a referendum next summer, however the Paris terror attacks may well delay the timetable.

The SNP, which opposed an in-out referendum, last year set out an uncontroversial wish-list for EU reform – including economic growth, cutting unemployment, less red tape, an EU-wide energy grid and a single market in digital services – which partially overlaps with Cameron’s aims.

However, Nicola Sturgeon has said the SNP believes “unequivocally” that EU membership is in Scotland’s best interests, and will make an “overwhelmingly positive” case for staying in.

An estimated 300,000 Scottish jobs are supported by exports within the EU.

Scottish Tory MSP Alex Johnstone said: "There's no question migrant workers provide great benefit for Scotland's economy, filling gaps in the labour market we couldn't otherwise. But the benefits system is to help those who have fallen on hard times or are unable to work. It cannot be used for those who come here for no other reason than taking money away from the state.”

A Scottish Government spokeswoman said: “The Scottish Government is completely opposed to any measures to restrict benefits purely on the basis of nationality. The Scotland Bill will give Scotland devolved power over a range of benefits, but these will be subject to EU legislation.

“We are therefore concerned that any changes necessary to EU legislation to implement the UK’s requests might also restrict access to benefits for people in Scotland. This might also limit our ability to top up benefits for people who lose them as a result of these changes.”