West Sussex must support the destitute group until they find their own homes and jobs or become eligible for benefits.
This could take up to six months.
The ruling overturned a previous agreement that the council would look after the group until 1 September, then fly them home if they had not found alternative means of support (HT 8 August, page 9).
West Sussex, whose area covers Gatwick airport, fears that more destitute Diego Garcians will arrive and ask for financial help.
It is considering an appeal against the ruling.
It has repeatedly appealed to central government to step in, but the Department for Work and Pensions, the Foreign Office and the Department of Health have all refused to get involved.
Mark Dunn, cabinet member for social services at the council, said: "It's infuriating that we find it impossible to have a proper discussion with central government on how to treat these people in a proper and dignified way. It's quite monstrous.
"I have got to try and make our limited resources cover the needs of our own residents and I'm going to be made to appear like Colonel Blimp who refuses to face up to proper human responsibilities."
The Diego Garcians were granted British citizenship under the British Overseas Territories Act 2002, so the Foreign Office claims to have "no say in the matter".
The DWP has refused to help the islanders until they pass the habitual residence test and qualify for benefits. A DWP spokesman said: "The local social services department is responsible."
The DoH, which oversees social services departments, has given West Sussex advice face-to-face and by letter.
The council will continue to lobby central government.
Source
Housing Today
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