Thirty children turned up in hospitals across four NHS trusts in the UK with new-onset type-1 diabetes between March 23, the beginning of lockdown, and June 4, with two of the hospitals recording clusters of 10 cases each.
They would normally have expected between two and four.
Seventy-two per cent of the children presented with diabetic ketoacidosis (DKA), a serious complication. Half of the cases had DKA in a severe form.
Although only five children tested positive for Covid-19 - two for current infection and three for antibody evidence - the study authors say more could have had the virus undetected.
Dr Karen Logan, who led the research, said: "We believe this study is the first to show a potential link between Covid-19 and the development of type-1 diabetes in some children."
The study was launched following reports from China and Italy of a similar increase among children.
Julian Hamilton-Shield, professor of diabetes and metabolic endocrinology at the University of Bristol, said the findings mirrored anecdotal evidence from across England in recent months.