HMRC sent sensitive data ‘to save costs’
Her Majesty’s Revenue and Customs (HMRC) refused to give the National Audit Office (NAO) a copy of child benefit data with the sensitive details removed because it would have been too costly, it emerged this afternoon.
Emails released by the (NAO) this afternoon show the department only requested child benefit numbers, claimants’ names and national insurance numbers for audits in March and October.
On both occasions, HMRC said it would be too costly to separate the data and instead sent over a complete copy of child benefit data – including bank details and addresses – on password-protected discs.
The revelation will raise fresh questions over HMRC’s competence, with opposition politicians claiming the department is under-funded and increasingly disorganised.
In a briefing note to the chancellor Alistair Darling, the NAO states: “HMRC stressed to us that they would prefer us to use the data that they held and not run additional data scans/filters that would incur a cost to the department.”
In an email exchange dated March 13th 2007, an unnamed NAO employee requested data on child benefit recipients; with the specific instruction the NAO did not need addresses, bank numbers or parent details.
An HMRC official responded: “I must stress we must make use of data we hold and not over burden the business”.
Mr Darling admitted to MPs on Tuesday the complete data including bank details should never have been sent to the NAO.
The error was blamed on an unnamed junior official, but the Conservatives have insisted more senior figures were aware of the request.
The procedural breach only emerged after two computer discs went missing after being dispatched by unregistered TNT post.
In further embarrassment to the government, the request from October notes: “Please could you ensure that the CDs are delivered to NAO as safely as possible due to their content.”
In one reprieve it appears the password for the non-encrypted CDs was not written on the actual discs as some suspected, but was to be emailed to the auditor after receipt.
This afternoon, HMRC said it was likely the missing discs are “still on government property”.
Police are continuing to search for the lost discs, but all involved claim there is no reason to think they have fallen into criminal hands.
