The rollout of children's database Contact Point will be delayed for a second time after technical glitches emerged during testing.

The database, part of the government's Every Child Matters policy, was due to be deployed this October, but will be now not be operational until January 2009, according to the Department for Children, Schools and Families.

In a letter to the chairman of the Children, Schools and Families Select Committee, the parliamentary under secretary of state for children, young people and families, Kevin Brennan, said: "We have worked hard with delivery partners and other stakeholders for a long time and Contact Point is now close to deployment. However, we have identified some issues as a result of recent system tests which we are working urgently to address."

The system has been criticised over plans to allow police the right to apply for access, in order to obtain information to support prosecution and crime prevention.

"In effect it enables the police to build a list of suspects before a crime has been committed – hence the emphasis on crime prevention," said Baroness Sue Miller of the Liberal Democrats.

"This development totally undermines the purpose of Contact Point by making it children versus authority."