Peers rejected banning the clause by 42 votes

But on Monday evening, 42 peers in the House of Lords defied UK Government wishes and voted to retain the 12-year-old law in England and Wales.

The Scottish Executive remained defiant throughout that the clause had to go.

Fierce opposition came from Scottish businessman Brian Souter, who helped set up the Keep the Clause campaign group, and the Catholic Church in Scotland.

They were eventually placated by a compromise in new guidance on sex education in schools which spotlights marriage.

At Westminster, Local Government Minister Hilary Armstrong said she was "very disappointed" at the Lords vote.

It is the second time peers have rejected government plans to scrap Section 28 and ministers must now decide whether to drop the proposal in England and Wales.

It had been widely expected that if peers inflicted another defeat, the government would forego the repeal clause rather than lose its Local Government Bill in which plans for repeal appear.