Amanda Vanstone, the Australian Minister for Family & Community Services, has attacked the UK government over its refusal to uprate the pensions of Britons living in Australia.

In an interview with BBC News, Ms Vanstone said the government's policy was "unfair and discriminatory".

Her comments followed a report by BBC News Online that the Australian government was seeking to intervene in a case being brought against the UK government by Anette Carson, 60, a British pensioner living in South Africa.

Last year, Ms Carson won the right to challenge the UK government over its refusal to increase her pension each year in line with inflation.

At the hearing in the High Court on Wednesday, Mr Justice Burton gave the Australian government the right to submit a witness statement at the trial which is due to take place next month.

However, lawyers for the Australian government will not be allowed to address the court - an audience to intervene - unless the trial judge gives his permission.

Australian anger

Ms Vanstone accused the UK government of being unreceptive to the concerns of British pensioners living in Australia, saying that her government "simply cannot understand" why the policy remains in place.

She said that the matter effectively meant that the Australian government would not enter into any new social security agreements or renegotiate existing ones with the UK.

Ms Vanstone said: "We have made it very clear to the British government that we believe the practice of not indexing the pensions in Australia and some other countries is unfair and discriminatory."

She added: "We have had no luck in convincing the British government of this point and consequently have walked away from any further social security agreements with the United Kingdom until they understand the situation."

Pension variation

In March 2001, Australia broke off a social security agreement with the UK, saying it would no longer top up the pensions of Britons living in Australia.

While it provides support for some pensioners, it says that 60,000 are relying on the shrinking value of their British pensions alone.

In April, the UK government will uprate the pensions of about 12 million Britons worldwide, except 490,000 of whom 220,000 live in Australia.

British pensioners living in 48 of the 54 Commonwealth countries, including Australia, have their pensions frozen either at the date they arrived in their new country of residence or at the date they first became eligible for a pension after emigration.

However, people living in the European Union, and United States, for example, see their pensions increased each year.