TUC general secretary Brendan Barber

Trade unions have challenged the government in the High Court over the restrictions contained in new gay rights regulations.

The TUC believes the sexual orientation rules are welcome but do not go far enough in preventing discrimination.

Six unions combined to force a legal challenge in a bid to protect the pension and employment rights of gay and lesbian workers.

The regulations exempt religious organisations and the unions believe this and another loophole barring the receipt of certain benefits leave homosexuals open to exploitation.

Unison, Amicus, the Public and Commercial Services Union and teaching unions NUT, NASUWT and NATFHE presented their case to judges on Monday.

"This is a good law made less effective by two small but significant restrictions," TUC general secretary Brendan Barber said.

"If gay workers are to achieve true equality with their colleagues, the government needs to scrap the offending clauses."

The government, however, continued to defend the policy as it stands.

"This new legislation will establish minimum requirements in law so that people can no longer be denied jobs because of prejudice, so that harassment can be tackled promptly and effectively and so that people have an equal chance of training and promotion whatever their background," said Jacqui Smith, deputy minister for women and equality.