Nearly 900 children classified as stateless were obliged to pay Home Office immigration fees last year as part of their applications to become British citizens, figures show.

They also reveal that nearly half (46%) of the 39,000 citizenship applications made for children came from those whose parents are from Commonwealth backgrounds.

While fees for immigration and nationality applications have risen steadily since 2010 under the hostile environment policy, the charges levied on children have come under particular criticism from MPs and campaigners.

An official watchdog has recommended that the Home Office, which is making a profit of £2m a month from charging children for citizenship, should consider scrapping immigration fees for children from poorer families.

The new data, which breaks down child applications for British citizenship by country of nationality and for those who are stateless, was obtained following a freedom of information request by the community group Citizens UK.

It shows that in the 12 months to September 2018 the Home Office received almost 40,000 British citizenship applications for children.

Children of Indian origin accounted for nearly 5,000 applications, the largest group proportionally. Nigeria and Pakistan were the second and third largest nationalities.

More than 18,000 applicants were originally from other Commonwealth countries such as Zimbabwe and Caribbean nations. Commonwealth applications made up 46% of the total, and a further 9,000 applications were made by children originally from EU countries.

Letters asking the diplomatic representatives of Commonwealth countries in the UK to make representations to the government on the issue were sent last month by school pupils campaigning with Citizens UK.

They asked for help to ensure that children born or raised in Britain, and who meet the strict eligibility criteria for UK citizenship, “are not unjustly and excessively penalised, or in some cases even left stateless because they are unable to apply for British citizenship due to the excessive fee levels”.

They added: “Given the shared history and Britain’s plan to reinvigorate trade with Commonwealth countries we hope you agree it is a matter of both justice and human decency and that Britain would gain international respect for dropping this unduly harsh policy towards children.”

A report by the independent chief inspector of borders and immigration called on the government to publish information on the negative social and equality impact of the Home Office’s fees policy, which is blamed for driving thousands of parents into overwork, debt and even skipping meals to pay the fees.

Stuart Tannock, a sociology professor who works with Citizens UK, said: “Access to British citizenship is vital if children are to play a full role in our society and reach their potential. These children have already met the strict criteria and have a legal right to British citizenship, but they cannot access their papers because of the unaffordable £1,012 fee.

“Without citizenship, the government risks leaving children unable to attend university, get a job, or even without a nationality at all. We are urging the Home Office to reduce the cost of citizenship so these young people can have a bright future in the country they call home.”

A Home Office spokesperson said: “To reduce the burden on UK taxpayers, fee levels take into account the wider costs involved in running our border, immigration and citizenship system, so that those who directly benefit from it contribute to its funding. The home secretary has committed to keeping fees under review.”

The spokesperson said fees did not apply to stateless individuals who had spent a significant amount of their life in the UK, including vulnerable children, when they applied for leave to remain. Citizens UK pointed out, however, that waivers did not apply to child citizenship applications.