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Discs loss 'entirely avoidable' Discs loss 'entirely avoidable'
(about 1 hour later)
The loss of discs containing personal details of 25 million people was "entirely avoidable", a report says.The loss of discs containing personal details of 25 million people was "entirely avoidable", a report says.
The Poynter report does not blame individual officials, but highlights serious structural failings at HM Revenue and Customs (HMRC) offices. The Poynter report does not blame individual officials, but highlights "serious institutional deficiencies" at HM Revenue and Customs (HMRC).
Chancellor Alistair Darling told MPs action was already being taken to improve data security.Chancellor Alistair Darling told MPs action was already being taken to improve data security.
The Tories said the report and another by the Independent Police Complaints Commission were "truly devastating".The Tories said the report and another by the Independent Police Complaints Commission were "truly devastating".
Shadow Chancellor George Osborne said they highlighted "incompetence and systemic failure at the heart of this government".Shadow Chancellor George Osborne said they highlighted "incompetence and systemic failure at the heart of this government".
They were "a guide to how not to govern this country", he added.They were "a guide to how not to govern this country", he added.
Mr Darling said the public was entitled to expect government departments would protect their personal details, but added that there was "no evidence of any fraudulent activity" as a result of the child benefit breach. 'Culture change'
He said he agreed with Kieran Poynter, the man he appointed to investigate last October's breach, that there were "serious failings" in the way HMRC had been operating. Kieran Poynter's report blames the loss of the two discs on poor communication between management and junior staff, and low morale at the HMRC's Tyne and Wear offices.
The report does not blame the merger of Customs and Inland Revenue - which was brought in by his predecessor as chancellor - he told MPs. Senior officials were not even aware that the data was being removed from its offices until they were told it had been lost, Mr Darling told MPs.
But it did find the "complex system of management installed after the merger was not suitable", he added. The responsibility does indeed lie with the present prime minister Vince CableLib Dem Treasury spokesman
The Poynter reports blames the loss of the discs on poor communication between senior managers and junior staff at the HMRC offices in Tyne and Wear, low staff morale and inadequate training. The two discs had still not been found, he added, despite searches by both police and HMRC staff, but there was no evidence of any fraudulent activity as a result of the loss.
He "apologised unreservedly" to everyone affected by the data loss and said the public were entitled to expect government departments would protect their personal details.
He called for a "change of culture" across Whitehall so that "security is first and foremost in people's minds" following a string of further data breaches, including officials losing lap top computers.
'Not suitable'
The child benefit records were posted from HMRC to the National Audit Office in London - when they failed to arrive another copy was sent that did reach its destination.
But police were unable to locate the missing information, raising fears that it could be exploited by identity thieves.
When he briefed MPs on the loss in November, Mr Darling insisted a "junior official" had been responsible for posting the information "contrary to all HMRC standing procedures".
But he told MPs he accepted the Poynter Report findings in full - and said changes to the management structure of HMRC were already underway.
He said the report did not blame the loss of the data on the merger of HM Customs and the Inland Revenue, which was brought in by his predecessor as chancellor Gordon Brown.
But it did find the "complex system of management installed after the merger was not suitable".
Cabinet office report
Lib Dem Treasury spokesman Vince Cable said this meant Mr Brown had been to blame.
"The responsibility does indeed lie with the present prime minister, for specific decision which he made, which is the decision to remove 24,000 of the Inland Revenue.
"The consequence of which is that the Inland Revenue is now hopelessly ill-equipped to handle to growing complexity of the tax system and tax credits."
A separate report by the Independent Police Complaints Commission, said data security processes at HMRC were "woefully inadequate" with "a complete lack of any meaningful systems" and a "muddle-through" ethos.A separate report by the Independent Police Complaints Commission, said data security processes at HMRC were "woefully inadequate" with "a complete lack of any meaningful systems" and a "muddle-through" ethos.
Few members of staff appreciated the highly sensitive nature of the information contained on the two discs - and those who voiced concern were ignored, the report said.Few members of staff appreciated the highly sensitive nature of the information contained on the two discs - and those who voiced concern were ignored, the report said.
If an internal review being carried out at the time the discs were lost, in October last year, had been given higher priority, the incident might have been avoided, it added. If an internal review being carried out at the time the discs were lost had been given higher priority the incident might have been avoided, it added.
It was also announced that all civil servants dealing with personal data will be forced to undergo annual training, as part of a package of measures designed to prevent a repeat of the HMRC scandal and data losses by the Ministry of Defence (MoD).
Cabinet Secretary Sir Gus O'Donnell was asked by Prime Minister Gordon Brown to review information security right across Whitehall.
A series of "mandatory minimum measures" including encryption of data and compulsory independent expert assessment of systems, are among actions being put in place that are detailed in his report.
The Information Commissioner, Richard Thomas, said: "The reports that have been published today show deplorable failures at both HMRC and MoD.
"Whilst these breaches have been highly publicised and involve big numbers, sadly they are not isolated cases."
Mr Thomas said he would be taking formal enforcement action against HMRC and MoD - meaning they could face criminal prosecutions if they do not follow the recommendations set out in the reports.
Lessons had to be learned from recent data losses and information security "taken a great deal more seriously by those in charge of organisations", added Mr Thomas.