Kemi Badenoch has slammed a Church of England school for allowing a four-year-old child who is biologically a boy, to enrol as a girl.
The unnamed primary school in south east England allowed the child to join as a girl three years ago, aged four, and is now in Year 3.
A parent of another pupil at the school told the Telegraph they were "lied to" about the biological sex of the child, and the information was kept from them.
When the child's fellow classmates found out, parents also claimed their children were "traumatised" by the news.
Kemi Badenoch slammed transgender charities for publishing 'ridiculous' materials about children transitioning
GB News
The revelation comes just a month after the UK government released new guidance on how British schools can approach transgender children attending their establishments.
The guidance states that schools and colleges "have a duty" to safeguard and promote the welfare of all children and a "cautious approach should be taken" when responding to requests of social transition.
Discussing the transgender pupil at the Church of England school, Business and Trade Secretary Kemi Badenoch said the agenda of transgender children being pushed by groups such as Mermaids and Stonewall is "utterly ridiculous".
Badenoch also stated that schools "should not allow" four-year-old children to identify as a different gender.
The biological sex of the child was kept hidden from fellow classmates and parents
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Speaking to Camilla Tominey on GB News, Badenoch reacted: "This is why we brought out the guidance at the end of last year. These decisions were made before the government had published that guidance, but this is one of the problems that many schools are dealing with.
"Big campaign groups out there, Stonewall, Mermaids, call themselves charities, but they are out there making materials telling people that you should be doing this for children of that age - I think that is utterly ridiculous."
Badenoch admitted: "I have a four year old, she sometimes tells me that she's a rabbit. That doesn't mean I'm going to start giving her carrots for every single meal."
She then told Camilla that transgender ideology "has no place in primary schools".
Kemi Badenoch shut down suggestions that she is 'transphobic'
GB News
Camilla then quizzed Badenoch on her beliefs of transgenderism, following claims that she is a "turf" and a "transphobic person".
Badenoch shut down the claims, responding: "The fact that they're resorting to abuse rather than making the argument shows what those those people are like. We want to make sure that genuine trans people are able to live their lives with dignity and in privacy and to have a community, be kind to them.
"We didn't have this problem 20 years ago and when I speak to people who have been transgender for decades, they say that our lives were fine until people decided to take us up as a cause."
In a statement, a Department for Education spokesperson said: "The protection and safeguarding of children should always be the absolute first priority of any school and its teachers.
"It is a legal requirement to accurately record a child's sex in the admissions register, as our guidance on gender questioning children makes clear.
"The guidance is also clear about the importance of biological sex in the context of safeguarding, and we expect that in the vast majority of cases schools will not support the social transition of primary aged children, including using pronouns that do not align with the child's sex.
"We are now urgently engaging with the academy trust and the local authority to make sure every child is appropriately supported and safeguarded."