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Finding words to describe the loss of the confidential details of 15 million child benefit recipients en route to the National Audit Office is rather difficult.
When he announced his unexpected resignation in July 2006, Sir David Varney said: 'I am leaving the newly-created HMRC with a clear plan to improve further the service to our customers over the next five years and a successful new management team to deliver this plan' — words that may now haunt HMRC head office.
The loss of confidential child benefit details follows the theft in October 2007 of an HMRC laptop, which contained information on up to 2,000 individual savings accounts holders, and the loss of a CD containing details of almost 15,000 Standard Life customers.
This time the numbers are astronomical; 7.25 million families, 15 million child benefit recipients and 25 million individuals and have led to the resignation of HMRC chairman Paul Gray.
Alistair Darling made a statement to the House of Commons today, 20 November, and it appears that this was an accident waiting to happen with similar information having been sent — without following strict security rules — to the NAO in the Spring.
Darling explained that two password-protected discs with HMRC's entire child benefit payment data were then sent to the NAO in October. The package was not recorded and appeared not to have arrived at the NAO. A second package was sent by recorded post and this did arrive. The first package was still missing and a police investigation has been launched.
Mr Darling said that there was no evidence that the information had been used for fraudulent activity, however, it is understood that the missing information comprises details of all child benefit recipients, including children's names, addresses, dates of birth, National Insurance numbers and some bank and building society account details.
In response, the Shadow Chancellor, George Osborne, said that HMRC's security protocols were 'absolutely worthless' and acting Liberal Democrat Leader and Shadow Chancellor, Vince Cable said that 'the Treasury and its agencies have replaced the Home Office as the department in government which is most “unfit for purpose”'.
