The Church of England's guidance for primary schools on transgender identity, detailed in the "Valuing All God’s Children" report, has come under scrutiny after it was revealed that funding for the document came from Stonewall, a leading LGBT charity.

This guidance, currently implemented across 4,630 Church of England schools, encourages an inclusive environment where primary-aged children should be “at liberty to explore the possibilities of who they might be without judgement or derision”.

However, this association with Stonewall has sparked widespread debate with gender-critical campaigners saying that this should be a “wake up call” for the Church.

In response to concerns, the Rt Rev Jonathan Frost, the Bishop of Portsmouth, clarified that while Stonewall did not contribute to the writing of the report, they provided a grant for its development and distribution.

“They recognised the quality of our work in Valuing All God’s Children, so were keen that we should be enabled to develop it to include the prevention of transphobic bullying through an updated version,” he said.

This funding was part of Stonewall's broader initiative supported by a significant grant from the Department of Education to combat transphobic bullying.

The "Valuing All God’s Children" report is currently under review following the Department for Education’s (DfE) consultation on new guidance for schools on how to respond to gender-questioning pupils.

The guidance from the DfE advises schools to only use sex-based pronouns, that children cannot change their legal sex and avoids using the word transgender.

As the Church of England considers updates to its guidance, Andrea Williams of Christian Concern calls for a return to biblical foundations, reflecting the broader discussion on the role of external influences in religious educational policy.

Helen Joyce of Sex Matters says: “this is further evidence of Stonewall’s influence behind the scenes, and how it has embedded policies that run counter to equalities law and safeguarding, and harm girls and gay teenagers in particular.

“The Church of England probably entered into this arrangement in good faith. But it should come as a wake-up call for the Church – and all other school leaders – to put safeguarding first and refuse to take money from or work with any organisation that does not.”

Last month, Nigel and Sally Rowe were among a group of Christian parents who wrote to Archbishop Justin Welby calling for him to scrap the guidance. They shared the story of their six-year-old son who was told by his Church of England school that he would be deemed transphobic if he did not recognise another boy as a girl.

Miriam Cates, the Tory MP for Penistone and Stockbridge, said: “Activist groups should not be enabled by any education providers to push their political agendas in schools.

“Taking money in return for allowing Stonewall to essentially dictate the Church of England’s policy is a complete failure by those in authority.

“This guidance should be withdrawn as a matter of urgency and replaced with new rules that put the safeguarding of children first.”