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The Accord Coalition says Religious Education should be a nationally determined school subject offering a wide perspective on beliefs and values.
The C of E's newly released guidance on pupil admission policies for its schools fails to substantiate earlier commitments to reduce discrimination.
Scottish Tory justice spokesperson John Lamont says the west of Scotland school system contributes to the "conditioning of sectarian attitudes".
Peers have highlighted concerns about the way the Education Bill could allow schools, and notably faith schools, to operate in narrow and exclusive ways.
University College London and the Accord Coalition on inclusive schooling are teaming up to host a major panel debate on the role of religion in education.
Research shows that religious discrimination in schools presents a big barrier to integration, and that ethnic segregation in English schools is entrenched.
The Accord Coalition has sent a briefing to MPs ahead of the Report Stage and third reading of the Education Bill in the House Commons this Wednesday.