The toddlers are being exposed to characters who are unsure about their gender by a Government-funded Lesbian, Gay, Bisexual and Transgender charity.

One of the books is called Jamie: A Transgender Cinderella Story and another features Thomas the teddy bear who tells friends he wants to be Tilly the girl teddy.

LGBT charity Educate & Celebrate claim their school reading lists will banish outdated stereotypes by encouraging them to think about their own sexuality.

Chris McGovern, chairman of the Campaign for Real Education, said: “I do not question the intentions of the people using and promoting this material but it is misguided.

"They are inflicting adult neuroses about gender on to children who are not interested in gender.

"Adults need to stop thinking children see the world the way they do.

"They do not. They may play at being a goblin one day, a dragon the next.

“They do not see the world in the way adults do and inflicting adult neuroses about gender on to children is damaging and cruel.”

Andrea Williams of Christian Concern, added: “This is using our children as pawns to promote a new and dangerous ideology.

"Educate & Celebrate is a political and ideological organisation which does not educate and does not celebrate children.

“They confuse our children and our classrooms are not safe places if they are allowed to continue.”

The books are being used at nurseries and primary schools, to prevent homophobia and transphobia.

Music teacher Elly Barnes, who set up Educate & Celebrate, said: “Our young people are not born racist, sexist, homophobic or transphobic.

“The problem lies with the grown-ups and giving them the confidence and the resources to be inclusive of gender identity and sexual orientation.”

The Department for Education said it had funded Educate & Celebrate in the past to help schools tackle anti-LGBT bullying.

However a spokesman said the department was not involved in the charity’s work providing books to schools.