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Darling admits 25m records lost Darling admits 25m records lost
(10 minutes later)
Alistair Darling has blamed mistakes by junior officials at HM Revenue and Customs after details of 25 million child benefit recipients were lost.Alistair Darling has blamed mistakes by junior officials at HM Revenue and Customs after details of 25 million child benefit recipients were lost.
The Chancellor said information, including bank details of 7m families, had been sent on discs to the National Audit office by unrecorded delivery.The Chancellor said information, including bank details of 7m families, had been sent on discs to the National Audit office by unrecorded delivery.
The discs had never arrived at their destination, Mr Darling told MPs.The discs had never arrived at their destination, Mr Darling told MPs.
He apologised for what he said was "an extremely serious failure" but insisted people were not at risk from ID fraud.He apologised for what he said was "an extremely serious failure" but insisted people were not at risk from ID fraud.
The package was not recorded or registered Alistair DarlingChancellor Point-by-point: Darling Q&A: Records lostThe package was not recorded or registered Alistair DarlingChancellor Point-by-point: Darling Q&A: Records lost
The records include parents' and children's names, addresses, dates of birth, child benefit and national insurance numbers and in some cases, bank or building society details.The records include parents' and children's names, addresses, dates of birth, child benefit and national insurance numbers and in some cases, bank or building society details.
He said the missing data was not enough to access accounts on its own but anyone who thought they had been the victim of fraud would be reimbursed by the banks.He said the missing data was not enough to access accounts on its own but anyone who thought they had been the victim of fraud would be reimbursed by the banks.
He said a police investigation had been launched into what he described as a "deeply regrettable incident," which is the latest and most serious in a string of mistakes with data at Revenue and Customs.He said a police investigation had been launched into what he described as a "deeply regrettable incident," which is the latest and most serious in a string of mistakes with data at Revenue and Customs.
'Not recorded''Not recorded'
The chairman of Revenue and Customs, Paul Gray, resigned earlier after the incident emerged.The chairman of Revenue and Customs, Paul Gray, resigned earlier after the incident emerged.
Briefing MPs on the incident, Mr Darling said the information had been transferred at a junior level in breach of HMRC's procedures.Briefing MPs on the incident, Mr Darling said the information had been transferred at a junior level in breach of HMRC's procedures.
The alarm bells must now ring in every organisation about the risks of not protecting people's personal information properly Richard ThomasInformation commissioner How worried should you be?
"Contrary to all HMRC standing proceedures two password protected discs containing a full copy of HMRC's entire data in relation to the payment of child benefit was sent to the National Audit Office by HMRC's internal postal system operated by the courier TNT."Contrary to all HMRC standing proceedures two password protected discs containing a full copy of HMRC's entire data in relation to the payment of child benefit was sent to the National Audit Office by HMRC's internal postal system operated by the courier TNT.
"The package was not recorded or registered.""The package was not recorded or registered."
"Mr Speaker, it appears that the data has failed to reach the addressee at the NAO."Mr Speaker, it appears that the data has failed to reach the addressee at the NAO.
"Mr Speaker I also have to tell the house that on finding that the package had not arrived at the NAO a further copy of this data was sent - this time by registered post which did arrive at the NAO However, again HMRC should never have let this happen.""Mr Speaker I also have to tell the house that on finding that the package had not arrived at the NAO a further copy of this data was sent - this time by registered post which did arrive at the NAO However, again HMRC should never have let this happen."
'Get a grip''Get a grip'
The data was sent on October 18 and senior management at HMRC were told it was missing on November 8 and the Chancellor on November 10, said Mr Darling.The data was sent on October 18 and senior management at HMRC were told it was missing on November 8 and the Chancellor on November 10, said Mr Darling.
Shadow Chancellor George Osborne said the government needed to "get a grip" and deliver a basic level of competence.Shadow Chancellor George Osborne said the government needed to "get a grip" and deliver a basic level of competence.
He said it was the "final blow for the ambitions of this government to create a national ID database" as "they simply can not be trusted with people's personal information".He said it was the "final blow for the ambitions of this government to create a national ID database" as "they simply can not be trusted with people's personal information".
Lib Dem acting leader Vince Cable said it was now the Treasury and not the Home Office that was "not fit for purpose".Lib Dem acting leader Vince Cable said it was now the Treasury and not the Home Office that was "not fit for purpose".
He asked why the information had been sent on discs through the internal mail when it should have been sent electronically.He asked why the information had been sent on discs through the internal mail when it should have been sent electronically.
'Searching questions''Searching questions'
Information Commissioner Richard Thomas said: "This is an extremely serious and disturbing security breach. This is not the first time that we have been made aware of breaches at the HM Revenue and Customs - we are already investigating two other breaches.Information Commissioner Richard Thomas said: "This is an extremely serious and disturbing security breach. This is not the first time that we have been made aware of breaches at the HM Revenue and Customs - we are already investigating two other breaches.
"Incidents like these illustrate that any system is only as good as its weakest link. The alarm bells must now ring in every organisation about the risks of not protecting people's personal information properly."Incidents like these illustrate that any system is only as good as its weakest link. The alarm bells must now ring in every organisation about the risks of not protecting people's personal information properly.
"As I highlighted earlier this year, it is imperative that organisations earn public trust and confidence by addressing security and other data protection safeguards with the utmost vigour.""As I highlighted earlier this year, it is imperative that organisations earn public trust and confidence by addressing security and other data protection safeguards with the utmost vigour."
Mr Thomas welcomed the Chancellor's announcement of an independent review of the incident by Kieran Poynter of PricewaterhouseCoopers and said he would decide on further action once he has received the report.Mr Thomas welcomed the Chancellor's announcement of an independent review of the incident by Kieran Poynter of PricewaterhouseCoopers and said he would decide on further action once he has received the report.
"Searching questions need to be answered about systems, procedures and human error inside both HMRC and NAO," said Mr Thomas."Searching questions need to be answered about systems, procedures and human error inside both HMRC and NAO," said Mr Thomas.
The prime minister's official spokeswoman said Gordon Brown has "full confidence" in Mr Darling. She added that Mr Darling has not offered to resign.The prime minister's official spokeswoman said Gordon Brown has "full confidence" in Mr Darling. She added that Mr Darling has not offered to resign.