Up to 20 Lithuanians, Slovakians, Poles, Ukrainians and Russians have set up camp in an area of Peterborough, Cambs.

Peterborough City Council said the group, mainly male and in their 30s or 40s, had refused all offers of help and had continued living "rent-free" on the streets.

"They have been told that their camp is illegal and must be removed but have moved their tents only a short distance further along," said a spokesman.

"It may next be necessary to take enforcement action. Essentially, they have refused opportunities for work and only undertake sporadic employment when no other means of support are available. They prefer to live rent free."

The spokesman said three tents have been put up in the city's Bourges Boulevard, with up to 20 "rough sleepers" thought to be living there.

The spokesman added: "It gives migrant workers a bad name and denigrates Peterborough's reputation."

Antony Slack, 47, of the Peterborough Christian United People Ministry, is helping the group by handing out food and clothing. He has also made a DVD to highlight their plight.

"Some are living in tents and others are using plastic sheeting and tarpaulin as shelter," he said. "There are about four or five locations where people are living in bushes.

"We want to raise awareness of what is happening in our community. It's also a message to people thinking of coming over here from eastern Europe. Our streets are not paved with gold. We have our own problems and there's no guarantee of work."