Migrants will need a job offer before they can come to Britain after Brexit.
They will also be banned from claiming benefits for five years — slashing up to £800million a year off the bloated welfare bill.
Boris Johnson has decided EU citizens will be subject to the same rules as the rest of the world when free movement ends in January 2021.
It will mean serious criminals from other European countries can be refused entry into Britain and those who break the law while here can be deported.
The PM has vowed to bring in an Aussie-style points based system to let those with higher skills jump to the front of the queue.
The Sunday Times reported that immigrants will have to pay a £625 surcharge to cover the cost of care when they come to the UK.
And they will end paying child benefit to migrants whose children live abroad.
Home Secretary Priti Patel said the changes would put the Government in control of immigration and welfare policy for the first time in 40 years.
She said: “We’ll take back control of our borders. We’ll know who’s coming in and who’s going out.”
She refused to set an immigration target but said: “We will bring it down. This will reduce the number of low-skilled migrants coming to the UK.”
Official data from before the 2016 Brexit referendum showed EU migrants in Britain got £2.2billion a year in tax credits and housing benefits, £1.1billion in out-of-work payments and £700million in child benefit.
Ms Patel said: “We will end the absurdity of giving people child benefit for children who aren’t in Britain.”
An immediate £20million payment will strengthen UK borders and cut illegal entry.