HMRC chairman resigns over lost discs

Wednesday, 21, Nov 2007 12:00

Bank customers have be advised to monitor their accounts closely after it emerged yesterday that a security breach at Her Majesty's Revenue and Customs (HMRC) had misplaced two computer discs carrying the private information of 25 million child benefit claimants.

As the chancellor Alistair Darling announced the "catastrophic failing" in the Commons yesterday, a full-scale investigation got underway to locate the missing discs.

The two discs were not encrypted but are password protected, the chancellor confirmed.

The identity of the junior HMRC official responsible for sending the discs and breaching government regulations has not been disclosed.

Assuming accountability for blunder, the chairman of the HMRC, Paul Gray, resigned ahead of the announcement yesterday.

In a statement to staff, Mr Gray said: "Given my overall accountability for the way the department operates, I have concluded that, as a result of the recent failings, it is right for me to decide to stand down."

Despite the resignation, there have been further calls for heads to roll, most notably aimed at Alistair Darling.

Standing at the dispatch box yesterday, the chancellor was blushingly forced to admit the mistake and dodged mortar fire from both his opposition counterparts.

Commenting on Mr Gray's departure, the chancellor said: "Last week Paul told me on his own initiative that given the seriousness of the operational failing, he felt he should resign."

Mr Gray admitted culpability for major operational and administrative failings at the department, resulting in the exposure of highly personal public information.

As many as 25 million individuals who receive child benefits from the government have been compromised by the blunder.

The two missing discs contain bank account and insurance details, Mr Darling confirmed.

He urged all of those effected to be particularly vigilant about monitoring their bank details, although he assured them that now incidents of fraud had yet emerged.