A senior minister has said the self-styled anti-Islamic extremist group the English Defence League's tactics are designed to provoke violence.
Mr Denham made his comments after clashes at a protest against a new mosque in north-west London.
Ten people were arrested after scuffles broke out as police attempted to separate protesters from a large number of people who opposed the group.
The EDL has recently been involved in a number of confrontations in Birmingham.
In a statement to the BBC, Mr Denham said: "I believe the English Defence League is not a large group, but they clearly have amongst them people who know exactly what they are doing.
"If you look at the types of demonstrations they have organised, the language used and the targets chosen, it looks pretty clear that it's a tactic designed to provoke, to get a response and create violence.
"It's important that we, right across government, make sure this does not happen.
"We need to make sure people realise we are going to deal with this and that people recognise there is not a need to tackle this through counter confrontation."
Discontent
The English Defence League, which has organised a series of recent protests that have resulted in violence, have further demonstrations planned for Manchester, Leeds and Luton over the next few weeks.
They are also expected to draw hundreds of supporters to a demonstration in Trafalgar Square on Sunday.
Mr Denham said there was a clear link between increasing support for the far-right and discontent in predominantly white working class communities.
He said this is due to fears that they are not being listened to.
At least 1,000 people gathered outside Harrow Central Mosque as activists from Stop Islamification of Europe - a group associated with the EDL - planned a demonstration there.
The group said they intended to hold a peaceful protest against the building of a five-storey mosque next to the Harrow Central Mosque.
Local Muslims and members of Unite Against Fascism (UAF) confronted the protesters, saying they had come to "defend the mosque".
Offensive weapons
Eyewitnesses say members of the anti-Islam group were chased away by a large group of young Muslims - a minority of whom then turned on the police.
Bricks, bottles and firecrackers were thrown at police officers, who were wearing riot gear.
Nine people were arrested for possession of offensive weapons including a hammer, a chisel and bottles of bleach.
Another person was arrested at the scene to prevent a breach of the peace, but he was released soon after, police said.
The Department of Communities said Mr Denham's comments are the start of concerted efforts to undercut the growth of far-right extremism.
A campaign will begin "during the autumn" to address the sense of alienation and disaffection some people are feeling.
It will include intensive engagement at neighbourhood level and greater effort to understand why some people currently feel overlooked or that system is weighted against them.
For example, the department says, there will be more effort to make sure money for job schemes and social homes are going to the right places and local residents fe continues here
Mr Denham made his comments after clashes at a protest against a new mosque in north-west London.
Ten people were arrested after scuffles broke out as police attempted to separate protesters from a large number of people who opposed the group.
The EDL has recently been involved in a number of confrontations in Birmingham.
In a statement to the BBC, Mr Denham said: "I believe the English Defence League is not a large group, but they clearly have amongst them people who know exactly what they are doing.
"If you look at the types of demonstrations they have organised, the language used and the targets chosen, it looks pretty clear that it's a tactic designed to provoke, to get a response and create violence.
"It's important that we, right across government, make sure this does not happen.
"We need to make sure people realise we are going to deal with this and that people recognise there is not a need to tackle this through counter confrontation."
Discontent
The English Defence League, which has organised a series of recent protests that have resulted in violence, have further demonstrations planned for Manchester, Leeds and Luton over the next few weeks.
They are also expected to draw hundreds of supporters to a demonstration in Trafalgar Square on Sunday.
Mr Denham said there was a clear link between increasing support for the far-right and discontent in predominantly white working class communities.
He said this is due to fears that they are not being listened to.
At least 1,000 people gathered outside Harrow Central Mosque as activists from Stop Islamification of Europe - a group associated with the EDL - planned a demonstration there.
The group said they intended to hold a peaceful protest against the building of a five-storey mosque next to the Harrow Central Mosque.
Local Muslims and members of Unite Against Fascism (UAF) confronted the protesters, saying they had come to "defend the mosque".
Offensive weapons
Eyewitnesses say members of the anti-Islam group were chased away by a large group of young Muslims - a minority of whom then turned on the police.
Bricks, bottles and firecrackers were thrown at police officers, who were wearing riot gear.
Nine people were arrested for possession of offensive weapons including a hammer, a chisel and bottles of bleach.
Another person was arrested at the scene to prevent a breach of the peace, but he was released soon after, police said.
The Department of Communities said Mr Denham's comments are the start of concerted efforts to undercut the growth of far-right extremism.
A campaign will begin "during the autumn" to address the sense of alienation and disaffection some people are feeling.
It will include intensive engagement at neighbourhood level and greater effort to understand why some people currently feel overlooked or that system is weighted against them.
For example, the department says, there will be more effort to make sure money for job schemes and social homes are going to the right places and local residents fe continues here
Mr Denham's comments are the start of concerted efforts to undercut the growth of far-right extremism.
A campaign will begin "during the autumn" to address the sense of alienation and disaffection some people are feeling.
It will include intensive engagement at neighbourhood level and greater effort to understand why some people currently feel overlooked or that system is weighted against them.
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