Data discs inquiry cost revealed

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The police inquiry into the loss of data discs containing the details of 25 million people cost £473,544, the government has revealed.

The two discs, containing child benefit records, were lost after being sent by post last year and were never found.

The Conservatives said taxpayers were footing the bill for "Labour's bungled handling of sensitive data".

HM Revenue and Customs agreed the loss was "extremely serious" but said it had accepted recommendations for change.

The child benefit records were posted from HMRC in Washington, Tyne and Wear, to the National Audit Office in London.

'Deficiencies'

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.

An Independent Police Complaints Commission report said there was no evidence of criminal wrongdoing by HMRC staff.

But a separate report last month by Kieran Poynter, chairman of accountancy firm PricewaterhouseCoopers, highlighted "serious institutional deficiencies" at HMRC.

These included poor communication between management and junior staff, and low morale at the Washington office.

The figure for the cost of the police inquiry was given in a written statement from Treasury Minister Jane Kennedy.

For the Conservatives, shadow Treasury Minister David Gauke said: "The British public is continuing to pay the price for Labour's incompetence.

"Gordon Brown's mismanagement of HM Revenue and Customs has already cost us billions of pounds in lost tax credits, and now taxpayers are having to foot a half a million pound bill for Labour's bungled handling of sensitive data."

But an HMRC spokeswoman said: "The Independent Police Complaints Commission report into the lost discs stated that there was no evidence of misconduct or criminality by any member of HMRC.

"The loss of the discs was extremely serious and should not have happened, and the government has welcomed and accepted all of the Poynter Review's findings and recommendations."