Findings: The commission, led by Baroness Butler-Sloss, said allowing schools to choose pupils by faith had 'negative practical consequences'

Christianity in Britain is being downgraded with other religions rising in prominence, a landmark study found.

The report found falling church congregation numbers and an increase in those practising other faiths was responsible for the decline.

It also cited a growing number of atheists as one of the key reasons for a ‘revolutionised landscape’ of religion in the UK.

Compiled by the Commission on Religion and Belief in British Public Life, the report suggested faith schools should be stripped of powers to select their own pupils because they are ‘socially divisive’.

Segregating children by religion failed to promote community cohesion, leading to greater misunderstanding and tension, the study found.

In addition, the long-standing legal requirement for daily Christian religious assemblies for schoolchildren should be scrapped, it concludes.

It also said religious studies classes in schools should teach how faith was used by extremists as a justification for terrorism.

In one of its key findings the commission, led by Baroness Butler-Sloss, said allowing schools to choose pupils by faith had ‘negative practical consequences’.

‘It is in our view not clear that segregation of young people into faith schools has promoted greater cohesion or that it has not been socially divisive, leading to greater misunderstanding and tension,’ said the study.

Lower attendances: The report by the Commission on Religion and Belief in British Public Life found falling church congregation numbers and an increase in those practising other faiths was responsible for the decline

‘Selection by religion segregates children not only according to different religious heritage but also… by ethnicity and socio-economic background. This undermines equality of opportunity.’

One-third of schools in England are publicly funded faith schools, the vast majority of which are Christian. In Northern Ireland, more than 90 per cent of children attend schools that are either Protestant or Catholic.

Former Archbishop of Canterbury: The commission is made up of members of all Britain's major religions and one of its patrons is Rowan Williams

Problems associated with faith schools also surfaced last year when Ofsted warned that pupils at six private Muslim faith schools could be at risk from ‘extremist influences and radicalisation’.

The report also called for a radical overhaul of the teaching of religion in schools to make it more realistic and relevant as Britain becomes an increasingly secular country.

The content of syllabuses on religion was overly sanitised and only showed its positive aspects, said the report.

It said: ‘They tend to portray religions only in a good light, focusing on the role of religions in encouraging peace, harmony and caring for the poor and the environment, and omitting the role of religions in reinforcing stereotypes and prejudice around issues such as gender, sexuality, ethnicity and race, and the attempts to use religion as a justification for terrorism.’

A massive recruitment and retraining drive was needed for those teaching religion and belief, according to the recommendations.

The subject should be treated ‘seriously and deeply in these unprecedented times of religious confusion and tension’.

Currently all state schools are legally required to provide daily acts of Christian-themed worship, such as assemblies, although past studies have found many schools ignore the rule.

The report suggests there should be new guidelines for inclusive assemblies that are ‘appropriate for pupils and staff of all religions and beliefs’ that contribute to their overall development.

The Department for Education said collective worship played an important role in school but parents had the right to remove their children from assemblies if they wish.

Selection by religion segregates children not only according to different religious heritage but also… by ethnicity and socio-economic background Commission on Religion and Belief in British Public Life

A spokesman said: ‘Collective worship plays an important role in schools. It encourages children to reflect on belief, and helps shape fundamental British values of tolerance, respect and understanding for others.

‘It is for schools to tailor their provision to suit the needs of their pupils, and parents can choose to withdraw their children from all or any part of collective worship.’

The commission was established by the Cambridge-based Woolf Institute, which studies relations between Christianity, Islam and Judaism, and public consultations were held over the past two years to gather research.