Nick Griffin yesterday branded Gurkhas "mercenaries" who should not be allowed to stay in Britain.
The leader of the far-right British National Party said: "We don't think the most overcrowded country in Europe, can realistically say, 'Look, you can all come and all your relatives.' When the Gurkhas signed up - frankly as mercenaries - they expected a pension which would allow them to live well in their own country.
"Because of economic development in Nepal, the British Army pension isn't now enough for them to be able to do that. It would be cheaper for us and probably far better for the Gurkhas to say, 'Why don't we just increase your pension so that more of you can live in Nepal rather than coming to Britain?'"
Griffin made the comments on Nicky Campbell's BBC Radio 5 Live breakfast show.
Martin Howe, solicitor to the Gurkhas, said: "Nick Griffin is wrong. He does not recognise the depth of feeling around the country that this is a debt of moral honour and gratitude."
Griffin also claimed football stars Rio Ferdinand, Theo Walcott and David James are not English. And when Campbell asked if he would let his daughter bring a black man home, he said: "I would be disappointed."