Alistair Darling's statement

Last Modified: 21 Nov 2007
By: Channel 4 News

The text of the chancellor's Commons statement on the loss of HMRC child benefit data.

Extracts from the statement to the House of Commons by the chancellor, Alistair Darling, on the loss by Her Majesty's Revenue and Customs of the personal records of 25 million individuals.

"In March of this year it appears that a junior official within HMRC provided the National Audit Office with a full copy of HMRC's data in relation to the payment of child benefit.

"This information should not have been handed over by HMRC in the way that it was. However, I understand that in this case the NAO subsequently returned all the information it received in March to HMRC after auditing it.

"It now appears that following a further request from the NAO in October for information from the Child Benefit database, and again at a junior level and again contrary to all HMRC standing 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. 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.'
Alistair Darling, chancellor of the exchequer

"Let me tell the house what is missing as a result of this extremely serious failure on the part of HMRC to protect sensitive personal data entrusted to it in breach of its own guidelines.

"The missing information contains details of all child benefit recipients: records for 25 million individuals and 7.25 million families.

"These records include the recipient and their children's names, addresses and dates of birth. It includes child benefit numbers, national insurance numbers, and, where relevant, bank or building society account details.

"Mr Speaker, I regard this as an extremely serious failure by HMRC in their responsibility to the public.

'I regard this as an extremely serious failure by HMRC in their responsibility to the public.'
Alistair Darling, chancellor of the exchequer

"The UK Payments Association, the British Banking Association and Building Societies Association have been informed. Through them HMRC informed individual banks and other financial institutions including building societies and post offices of affected accounts.

"Second, individual institutions are flagging these accounts which enables them to continually monitor for irregular activity. They tell me that so far they have found no evidence of such activity."