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She is set to give her crown to another beauty queen, Daisy Bell.The footage which made her change her mind showed Jai wearing a pair of boxer shorts.Jai, from Walkerburn in Peeblesshire, Scotland, insisted: "I am transgender."It seems to me that Rachael has based [her claims] on her subjective opinion from having viewed the documentary Miss Transgender, which is yet to be aired.Ms Bailey said: “When Jai entered the competition, she said she was full time and she is not – she is a drag queen.The documentary showed her living as a gay male in her boxer shorts."When I confronted her, she just said that I didn't have a leg to stand on and it is difficult."It is basically one transgender person saying to another 'You're not transgender enough to be in our competition'.

It is basically one transgender person saying to another ‘You’re not transgender enough to be in our competition’.

There was also a £5,000 cash prize for the winner, as well as a £3,000 modelling contract which has now been awarded to Daisy, 23.

She plans to hike 30 miles in high heels to highlight the issues faced by those awaiting gender transition.

There was also a £5,000 cash prize for the winner, as well as a £3,000 modelling contract which has now been awarded to Ms Bell.

The 23-year-old beauty queen, who in April is to hike 30 miles in high heels to highlight the issues faced by those awaiting gender transition, said Ms Bailey had claimed she had broken terms and conditions by “not being ‘full time’”.