MPs were due to vote on an amendment to the Children and Young Persons Bill, which would tighten current smacking laws. But the discussion was delayed by the Chancellor's emergency statement on the credit crisis.
Children's minister Beverley Hughes defended the current law, which allows parents to smack their children as long as they do not leave a mark or injury.
She said: "We do not encourage or condone smacking and we do not believe that it is the best means of controlling children's behaviour.
"But neither do we support a ban which would make smacking a crime. If we put a ban on smacking into legislation it would mean in practice that a mother who gives her child a mild smack on the hand when they refuse to put back sweets picked up at the supermarket checkout could end up facing criminal charges."
Children's charities lobbying for a ban stressed the need for action on current smacking laws. Shaun Kelly, head of safeguarding at Action for Children, expressed the charity's disappointment at yesterday's decision.
He said: "Current rules on smacking children send out a very dangerous message on the acceptability of violence against children, which seriously damage efforts being made to ensure they are effectively protected."