The Government gave peers a free vote on Monday on an amendment by Liberal Democrat Lord Lester to the Children Bill that would allow parents to use the defence, which dates back to 1860, in cases of common assault but not actual or grievous bodily harm.
This would outlaw bruising, scratching and reddening of the skin, caning and causing psychological distress.
Labour peers were told not to support a rival amendment, tabled by the Bishop of Portsmouth, that would have banned smacking by giving children the same protection from assault as adults. This was rejected by 250 votes to 75. The compromise amendment was passed by 226 votes to 91.
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