Children Now has seen amendments the party plans to lay down in the House of Lords once the Bill's committee stage begins there next week.
The Tories also want to see the creation of a national database that will not hold detailed information but will direct authorised parties to the local authority they require.
Shadow minister for children Earl Howe said the Bill as it stands would give the Government "unspecified powers" to devise local database systems that would share indefinite amounts of information about children to undefined groups.
"Nothing in the Bill indicates the threshold of concern that might trigger using the database," he said. "The risk is you'll have defensive people putting people on databases to protect their own legal positions."
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