According to The Sun, among sites still running is www.islam4uk.com - a front organisation for Anjem Choudary, a follower of hate preacher Omar Bakri.
Choudary praised demonstrators in Luton when they disrupted the Royal Anglian Regiment's homecoming parade.
Shadow Security Minister Baroness Neville-Jones said: "It is shocking the Government has failed to shut a single website, even though Parliament gave them that power.
"This smacks of dangerous complacency and incompetence. We've known for years that organisations like al-Qaeda use the Internet as a tool for radicalization," she added.
The Home Office said: "We have strict guidelines about what constitutes violent and extremist material. If material is hosted in the UK, contact between police and the Internet Service Provider has, to date, proven sufficient to have it removed."