Looks like we have some super sized coalition going on after today. Labour and Conservatives working together now. Talk of making free movement apply to those with jobs only (Belgium have this arrangement apparently).
Good news if true.
The actual EU laws regarding FoM make it quite clear that FoM applies to workers:
https://en.wikipedia.org/wiki/Freedom_of_movement_for_workers_in_the_European_Union
EU nationals can move to another member to to seek employment, but restrictions can be then be placed, e.g. they would have to join the job center and prove they are seeking employment and would be capable to working.