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Darling admits 25m records lost Darling admits 25m records lost
(20 minutes later)
Two computer discs holding the personal details of all families in the UK with a child under 16 have gone missing.Two computer discs holding the personal details of all families in the UK with a child under 16 have gone missing.
The Child Benefit data on them include name, address, date of birth, National Insurance number and, where relevant, bank details of 25m people.The Child Benefit data on them include name, address, date of birth, National Insurance number and, where relevant, bank details of 25m people.
Chancellor Alistair Darling said there was no evidence the data had fallen into criminal hands - but urged people to monitor their bank accounts.Chancellor Alistair Darling said there was no evidence the data had fallen into criminal hands - but urged people to monitor their bank accounts.
The Conservatives described the incident as a "catastrophic" failure.The Conservatives described the incident as a "catastrophic" failure.
In an emergency statement to MPs Mr Darling apologised for what he described as an "extremely serious failure on the part of HMRC to protect sensitive personal data entrusted to it in breach of its own guidelines".In an emergency statement to MPs Mr Darling apologised for what he described as an "extremely serious failure on the part of HMRC to protect sensitive personal data entrusted to it in breach of its own guidelines".
MPs gasped as Mr Darling told them: "The missing information contains details of all Child Benefit recipients: records for 25 million individuals and 7.25 million families. "MPs gasped as Mr Darling told them: "The missing information contains details of all Child Benefit recipients: records for 25 million individuals and 7.25 million families. "
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 chancellor blamed mistakes by junior officials at HMRC, who he said ignored security procedures.The chancellor blamed mistakes by junior officials at HMRC, who he said ignored security procedures.
"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 NAO, by HMRC's internal post system operated by the courier TNT."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 NAO, by HMRC's internal post system operated by the courier TNT.
The package was not recorded or registered. It appears the data has failed to reach the addressee in the NAO."The package was not recorded or registered. It appears the data has failed to reach the addressee in the NAO."
"The police tell me that they have no reason to believe that this data has found its way into the wrong hands. The police are not aware of any evidence that it has been used for fraudulent purposes or criminal activity.""The police tell me that they have no reason to believe that this data has found its way into the wrong hands. The police are not aware of any evidence that it has been used for fraudulent purposes or criminal activity."
Fraud protectionFraud protection
The HMRC has set up a Child Benefit Helpline on 0845 302 1444 for customers who want more details.
The data was sent on 18 October and senior management at HMRC were told it was missing on 8 November and the chancellor on 10 November, said Mr Darling.The data was sent on 18 October and senior management at HMRC were told it was missing on 8 November and the chancellor on 10 November, said Mr Darling.
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? WHAT CAN YOU DO? Check your bank statements for odd transactionsMonitor your account if you bank onlineChange your account password if it is a date of birth or name Source: Apacs How worried should you be?
Mr Darling said banks were adamant that they wanted as much time to prepare for his announcement as possible.Mr Darling said banks were adamant that they wanted as much time to prepare for his announcement as possible.
He added: "If someone is the innocent victim of fraud as a result of this incident, people can be assured they have protection under the Banking Code so they will not suffer any financial loss as a result."He added: "If someone is the innocent victim of fraud as a result of this incident, people can be assured they have protection under the Banking Code so they will not suffer any financial loss as a result."
Mr Darling said people should monitor their accounts "for any unusual activity".Mr Darling said people should monitor their accounts "for any unusual activity".
He said police were investigating the disappearance of the two discs.
He also announced that the Independent Police Complaints Commission (IPCC), which monitors HMRC, was likely to investigate the incident.He also announced that the Independent Police Complaints Commission (IPCC), which monitors HMRC, was likely to investigate the incident.
'Get a grip''Get a grip'
It is the latest and by far the most serious of a string of missing data incidents at HM Revenue and Customs.It is the latest and by far the most serious of a string of missing data incidents at HM Revenue and Customs.
HMRC chairman Paul Gray resigned earlier after the latest incident came to light.HMRC chairman Paul Gray resigned earlier after the latest incident came to light.
Shadow Chancellor George Osborne said: "Let us be clear about the scale of this catastrophic mistake - the names, the addresses and the dates of birth of every child in the country are sitting on two computer discs that are apparently lost in the post, and the bank account details and National Insurance numbers of ten million parents, guardians and carers have gone missing.Shadow Chancellor George Osborne said: "Let us be clear about the scale of this catastrophic mistake - the names, the addresses and the dates of birth of every child in the country are sitting on two computer discs that are apparently lost in the post, and the bank account details and National Insurance numbers of ten million parents, guardians and carers have gone missing.
"Half the country will be very anxious about the safety of their family and the security and the whole country will be wondering how on earth the government allowed this to happen.""Half the country will be very anxious about the safety of their family and the security and the whole country will be wondering how on earth the government allowed this to happen."
He urged the government to "get a grip" and deliver a basic level of competence and said it was the "final blow for the ambitions of this government to create a national ID database".He urged the government to "get a grip" and deliver a basic level of competence and said it was the "final blow for the ambitions of this government to create a national ID database".
"They simply can not be trusted with people's personal information," added Mr Osborne."They simply can not be trusted with people's personal information," added Mr Osborne.
Liberal Democrat Acting Leader Vince Cable said it was now the Treasury and not the Home Office that was "not fit for purpose".Liberal Democrat Acting Leader Vince Cable said it was now the Treasury and not the Home Office that was "not fit for purpose".
"Why does HMRC still use CDs for data transmission in this day and age? The ancient museum pieces it is currently using for computing must be replaced."Why does HMRC still use CDs for data transmission in this day and age? The ancient museum pieces it is currently using for computing must be replaced.
"After this disaster how can the public possibly have confidence in the vast centralised databases needed for the compulsory ID card scheme."After this disaster how can the public possibly have confidence in the vast centralised databases needed for the compulsory ID card scheme.
"Where does the buck stop after this catalogue of disasters?""Where does the buck stop after this catalogue of disasters?"
'Searching questions''Searching questions'
Giving his reaction, the Information Commissioner, Richard Thomas, said: "This is an extremely serious and disturbing security breach."Giving his reaction, the Information Commissioner, Richard Thomas, said: "This is an extremely serious and disturbing security breach."
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.