In an email leaked to CYP Now, the government claims the millions of pounds invested in the project so far will not go to waste.
"We are scrapping ContactPoint," the email said. "We will develop better ways of keeping children safe. The investment made won't be wasted because we can use the technical expertise we've acquired to protect those children most in need. But the idea of a single national IT database for all children has gone for good."
Despite this, councils will receive ContactPoint grants this month.
The email explains: "We recognise the need to minimise uncertainty for local authorities and other partners and the need to cover costs incurred to date. The government will make the first quarter grant payments to local authorities in June 2010 as planned. Further information and details of the way forward will be provided as soon as possible."
According to data from the old Department for Children, Schools and Families the initial cost of ContactPoint was £224m. Over five years, scrapping ContactPoint is expected to save £216.9m.
