Child benefit claims details 'lost'

The head of HM Revenue and Customs, Paul Gray, said in a statement today that he was resigning after "a substantial operational failure" in the department.

The treasury has refused to comment on reports that the resignation related to the loss of the data.

However, a government source who declined to be named confirmed that there had been a big data loss.

For the Conservatives, Michael Fallon MP said: "Let's not forget that HMRC is the prime responsibility of the chancellor, so he's got some explaining to do this afternoon."

The chancellor, Alistair Darling, is due to make a Commons statement on the matter at 3.30pm this afternoon.

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