Deputy director of social services Pauline Newman said the system which involves refugees choosing from a list of ready-cooked meals and ordering toiletries was the most efficient way of supplying asylum seekers with food and general goods.
She said the council was confident it could claim all of the money back from the government.
'We are very careful about containing the money within the government limit of£165 per person per week.
The council is being accused of running a delivery services which is more expensive than Harrods' service.
The home shopping scheme, with a delivery cost of£5.95, is to be extended to all asylum seekers after being tested on 40 of the more than 400 refugees being sheltered by the council.