Biggest government fuck up in history today

[Vanhalen 0]

I dont think this will make much of a ripple for our cousins across the pond, but our wonderful government has somehow managed to lose the details of 25 million people's personal details in regards to tax credits and they dont know where they are, this includes national insurance(social security) numbers, names, addresses, dates of births, bank account details, basically the identity of half the british population, I can barely believe I'm actually typing this out, it just seems absolutly fucking unbelieveable.

 

From bbc.co.uk/news

 

The chancellor is under huge pressure after admitting discs containing the personal details of 25 million people have gone missing in the post.

 

Alistair Darling has apologised for the "extremely serious failure", which has exposed all Child Benefit recipients to the threat of identity fraud.

 

The Tories said he needed to "get a grip" and show basic competence, the Lib Dems asked where "the buck stops".

 

The chairman of Revenue and Customs has quit. Police are looking for the discs.

 

In a Commons statement on Tuesday, Mr Darling said two discs, containing personal details of all families in the UK claiming child benefit, had gone missing in October.

 

 

CHILD BENEFIT HELPLINE

0845 302 1444

 

He blamed a junior official at HM Revenue and Customs' offices in Washington, Tyne and Wear, who he said had broken rules by downloading the data to a disc, then sending it - unrecorded - by courier to the National Audit Office in London for auditing.

 

The discs contained personal details including names, address, dates of birth, National Insurance numbers and, where relevant, bank details of 25 million people.

 

MISSING DATA INCLUDES...

National insurance number

Name, address and birth date

Partner's details

Names, sex and age of children

Bank/savings account details

 

The Metropolitan Police are now leading the search for the two password-protected discs, the Independent Police Complaints Commission, which oversees the HMRC, is investigating how the security breach happened.

 

In his statement, Mr Darling said details of 25 million people, 7.25m families were on the discs, which never turned up at the NAO.

 

He said he was first told about the breach on 10 November, but he had delayed the statement because banks and building societies had asked for time to prepare and make sure security procedures were in place.

 

'Extremely serious'

 

He said the police had said that they have no reason to believe that the discs had found their way into the wrong hands, nor any evidence of it being used for "fraudulent purposes or criminal activity."

 

Mr Darling told MPs: "This is an extremely serious matter. HMRC has a responsibility towards the general public who entrust it with highly sensitive personal information. It has failed to meet the high standards that should be expected of it."

 

CHILD BENEFIT

Available to the parents, normally mother, of every child in UK under 16

Older children in full-time education still eligible

Taken up by almost 100%

It amounts to £18.10 a week for a first-born child

For subsequent children - it amounts to £12.10 a week

 

He said he knew millions of people would be concerned and added: "I deeply regret this and apologise for the anxiety that will undoubtedly be caused."

 

It has emerged that the data had been sent on computer discs in the post three times this year. HMRC chairman Paul Gray has resigned.

 

Shadow chancellor George Osborne told MPs: "Half the country will be very anxious about the safety of their family and the security and the whole country will be wondering how on earth the government allowed this to happen."

 

He said the security protocols were "absolutely worthless" and suggested the breach should be the final blow to the government's controversial ID card scheme as ministers "simply cannot be trusted" with people's personal information.

 

"Never mind the lack of vision - just get a grip and deliver a basic level of competence," he said.

 

Meanwhile Liberal Democrat Acting Leader Vince Cable said Mr Gray, had resigned "as a matter of honour" and asked: "Where does the buck stop in this government?"

 

Later he told the BBC it was not a resigning matter for Mr Darling yet. "He seems to have acted promptly and properly in responding to the immediate emergency. I think what may emerge in the days and weeks to come is something more serious and his position may well become untenable," he added.

 

He said the department was "in crisis", owing to job cuts and failures of management supervision.

 

Customs and Excise was merged with the Inland Revenue in 2005, creating the biggest department in Whitehall. It was also ordered to reduce its 94,000 total staff by 25,000.

 

This latest breach follows others, including the loss of a disc containing the details of more than 15,000 Standard Life customers in November and the theft of a laptop holding hundreds of people's details in October.

 

Mark Serwotka, of the Public and Commercial Services union, told the BBC: "Are we creating the conditions in which mistakes like this can be made?

 

"And whilst Paul Gray, I think, has done the honourable thing today in resigning, it's the government which should ask itself, did they ask Paul Gray to do the impossible - deliver more and more, with less and less?"

 

The prime minister's official spokeswoman said Gordon Brown has "full confidence" in Mr Darling. She added that Mr Darling has not offered to resign.

 

 

[Vanhalen 0]

The grim faces on the Labour frontbenches said it all - Chancellor Alistair Darling may be living on borrowed time.

 

Alistair Darling

Mr Darling was told to get a grip

Worse, after Northern Rock, the economic competence of the entire government is now under serious question.

 

For the time being, the opposition parties are not calling for ministerial sackings. Acting Liberal Democrat leader Vince Cable came closest by asking where the buck stopped.

 

At the moment, they want to know how this extraordinary crisis is being dealt with and that the 25 million individuals affected by it can be reassured their most sensitive personal family and financial details are not in the hands of fraudsters or other criminals.

 

But these are only the opening stages of this affair and there is every chance things will get worse for Mr Darling and the government before it gets better.

 

The consequences are still difficult to calculate, with opponents in Westminster already hoping that there are comparisons with John Major's Tory government - which saw its reputation for economic competence shattered by the "Black Wednesday" withdrawal from the ERM in 1992.

 

Mr Major and his administration never recovered from that and eventually got thumped in the 1997 election.

 

Little weight

 

It is of course much too soon to make such comparisons but there are certainly serious issues at stake.

 

For a start there is the sheer breathtaking size of the security breach and the fact that junior officials were able to perpetrate it - innocently or otherwise.

 

Investigations are under way, including by the Metropolitan police, to get to the bottom of that.

 

Vince Cable

Mr Cable asked where the buck stopped

 

If it turns out there was no criminal activity, that this was simply an extraordinary cock-up, there will still be serious questions about how procedures were so loose as to allow a "junior official" to cause it and whether it was the result of budget cuts.

 

As Mr Cable also said, has the Treasury taken the place of the Home Office as the department not fit for purpose. The fact the department is officially independent of the Treasury and government will carry little weight.

 

If, however, it emerges there was criminal activity involved, or if it appears the information has already been used for illegal activity or fraud, the pressure on Mr Darling may well prove unbearable.

 

Shadow chancellor George Osborne has already claimed the affair is the "final blow" to the government's controversial ID card proposals. But there are bigger issues here.

 

Get a grip

 

As Mr Osborne told the government during the emergency statement: "Never mind the lack of vision, just get a grip. Deliver a basic level of competence."

 

And it is that which the opposition believes will prove the lasting and possibly even fatal damage to the chancellor or the government.

 

Gordon Brown's extraordinary honeymoon came crashing to an end after the botched early general election. Since then he has struggled to regain political momentum.

 

The Northern Rock crisis was only postponed by the government's bail-out and Mr Darling was given a rough ride when he updated MPs on the state of play earlier in the week.

 

Now, exactly 24 hours later, he was back in the Commons making one of the most genuinely shocking statements from a chancellor veteran Westminster watchers can recall.

 

What is absolutely clear is that, while the chancellor may have acted swiftly to contain this crisis, it still has a very long way to run.

 

Timeline: Child benefits records loss

Chancellor Alistair Darling has told the House of Commons that two CDs containing personal details of 25m people have been lost.

 

Here is a look at events at HM Revenue and Customs leading to the statement on Tuesday.

 

MARCH 2007

 

A junior official at HM Revenue and Customs gives the National Audit Office a full copy of HMRC's child benefit data, in breach of security procedures. That information is later safely returned.

 

SEPTEMBER

 

Records of about 15,000 people's details go missing after being sent by HMRC to Standard Life. Also in September, a laptop containing around 400 ISA (individual savings accounts) customers' details is stolen.

 

18 OCTOBER

 

Child benefit data is again sent to the NAO by a junior official, using the courier company TNT, which operates the HMRC's post system. The package containing two CDs, containing details of 25 million individuals, is not recorded or registered and fails to arrive.

 

24 OCTOBER

 

The NAO tells HMRC it has not received the package. An HMRC spokeswoman said the official believed it may have been delayed by the postal strikes or in the NAO's office move and did not report it. A second copy is sent, again in breach of procedures, but this time it is sent by registered post and arrives safely.

 

8 NOVEMBER

 

Senior HMRC management are informed that the 18 October package is missing.

 

10 NOVEMBER

 

Alistair Darling is informed and tells Prime Minister Gordon Brown. Mr Darling orders an immediate investigation and searches of all premises where the package might be, as well as action to ensure it does not happen again.

 

12 NOVEMBER

 

Mr Darling is told by HMRC that evidence has been found which might help to find the missing package.

 

14 NOVEMBER

 

The chancellor decides the HMRC searches have failed and tells HMRC chairman Paul Gray to call in the Metropolitan Police.

 

15 NOVEMBER

 

The chancellor goes to Information Commissioner Richard Thomas, who agrees that remedial action must be taken before a public statement is made.

 

12-18 NOVEMBER

 

Mr Gray tells Mr Darling he feels he should resign. The chancellor seeks the advice of the Financial Services Authority and Serious Organised Crime Agency, while banks are alerted by HMRC.

 

20 NOVEMBER

 

Mr Gray resigns following an announcement that Mr Darling is to make a statement to the House of Commons. The chancellor outlines what has happened and announces an investigation of HMRC's security procedures by PricewaterhouseCoopers chairman Kieran Poynter, alongside the Independent Police Complaints Commission, which monitors the HMRC.

 

Point-by-point: Darling statement

Chancellor Alistair Darling has been making a statement to MPs about the loss of confidential details of 15m child benefit recipients.

 

#

Mr Darling said earlier this year a junior official within HMRC provided a full copy of the details to the National Audit Office - which he said did not follow strict security rules and rules about its transit

 

#

He said the information should not have been handed over by HMRC as it was. But the NAO had returned all the information in March.

 

#

He said it now appears that at a junior level, in October, two password protected discs containing a full copy of HMRC's entire data in relation to the payment of the child benefit was sent to the NAO in October.

 

#

He said the package was not recorded, and it appeared it had not arrived at the NAO.

 

#

A further package was then sent, by recorded post, which did arrive, but Mr Darling said that should not have happened.

 

#

He said he was informed on Saturday 10th November and asked for an immediate investigation and for steps to be taken to stop it happening again.

 

#

He said by Wednesday 14 November it was clear the HMRC searches had failed to find the missing package, and he called in the police to find the missing package.

 

#

Mr Darling said inquiries were continuing, staff have been interviewed, but the information had not been found.

 

#

He said there was no evidence it had been used for fraudulent activity.

 

#

The missing information contains details of 25m individuals, 7.25m families - including children's names, addresses, dates of birth, NI numbers and where relevant bank and building society account details.

 

#

He said it was important to make sure the appropriate safeguards were in place before publicising the information and said the banks had been adamant they had sufficient time before a statement was made.

 

#

He said he sought advice from the FSA, serious organised crime agency and others.

 

#

He said bank associations had been informed, individual institutions were monitoring accounts to look out for unusual activity, and they were tracking back transactions on affected accounts and had as yet found "no evidence of unusual activity".

 

#

If someone was an innocent victim of fraud, he said they would have protection under the banking code and would not suffer any financial loss.

 

#

He said the missing data in itself was not enough for people to access people's bank accounts as passwords and other information would be needed, but admitted there was an "increased risk" and said people should keep an eye on their accounts and not give out personal details requested unexpectedly by phone.

 

#

He said the police investigation continues, but there was likely to be an Independent Police Complaints Commission inquiry as it has responsibility for HMRC.

 

#

It was "highly likely" there have been breaches of the Data Protection Act, he said.

 

#

The National Audit Office was also reviewing the way it requests information.

 

#

"No one will suffer any loss if they are innocent victims of fraud," he said.

 

#

For the Conservatives, George Osborne said half the country would be anxious about the safety of their family and their bank accounts.

 

#

He asked what contingency plans had been drawn up with police if it becomes clear details have fallen into the wrong hands.

 

#

He asked what steps had been taken to prepare for any "potential financial instability" owing to people being worried about their bank accounts.

 

#

He asked where liability rests, if money was taken.

 

#

"This is now the third and most serious breach by HMRC this year," he said, and asked when the chancellor knew security protocols in his department were "absolutely worthless".

 

#

He asked for confirmation that the police were investigating the individual responsible for sending the disc, and his or her superiors.

 

#

He asked whether it was a "final blow" to the ID card scheme, saying the government "simply cannot be trusted with people's information".

 

#

He said it had compromised the security and safety of "every family in the land" and told Mr Darling to "get a grip and deliver a basic level of competence".

 

#

Mr Darling agreed the way it had been handled was "inexcusable" and said there was no excuse for breaching laid down procedures.

 

#

Mr Darling said the banks had put in place all the precautions they reasonably could and said the police would not want him to speculate on what they would do if a crime were to take place but police were "addressing" the risks.

 

#

He said he had been told there was "every chance" the discs might be recovered during searches - but when it became clear that would not happen he called in the police.

 

#

He said the banks asked him to give them time to put in place the necessary protections before making a statement.

 

#

On ID cards he said the key thing was that information was protected by biometric information, while at the moment information was "much more vulnerable" than it should be.

 

#

He said it was a "deeply regrettable" incident which should never have happened and he was doing everything possible to put it right.

 

#

Liberal Democrat acting leader Vincent Cable asked how many unencrypted CDs were being sent around government at the moment.

 

#

He asked why information was being transmitted through CDs, not electronically and was it because of the "ancient IT systems" used by HMRC.

 

#

And he asked if half of the problem wasn't due to the 25,000 job losses in HMRC. "Clearly if officials are being asked to do more and more with fewer staff then mistakes will be made".

 

#

He said Mr Gray had resigned "as a matter of honour" - and said Treasury officials were reluctant to do so - adding: "Where does the buck stop in this government?"

 

#

Mr Darling agreed the information should not have been downloaded and sent in the way that it was.

 

#

He said the key problem was HMRC had clear instructions and rules in relation to downloading and transmitting information, but in this case the individuals' concerned had ignored them.

 

#

"That shouldn't have happened, and that's what we need to put right," he said.

 

#

The Conservative chairman of the public accounts committee Edward Leigh, said the auditor general had asked for bank account numbers and personal details to be removed before the information was sent to the National Audit Office.

 

#

He said there was "no doubt" the information never arrived, and the NAO should not be blamed adding: "This is criminally irresponsible behaviour on the part of a department (HMRC) which once had an unimpeachable reputation."

 

#

But Labour MP Sion Simon said it was a "random act" that could have happened under any government and the real test was how the government responded to it.

 

#

Labour MP John McDonnell said it was clear Mr Darling had taken action as soon as he had been aware of the mistake, but asked Mr Darling to meet with the PCS trade unions to discuss concerns about the job cuts at the HMRC.

 

#

The Conservative former minister Peter Lilley described it as "calamitous breach of privacy".

 

#

Labour MP Anne Snelgrove said a "good balance" had been struck, in the time given to allow banks to prepare, and that to inform the House of Commons.

 

#

But Conservative MP Michael Fallon, a member of the Treasury select committee asked, if the chancellor knew on 10 November, when did he inform the banks and why did he "dither" for 4 days before alerting the police.

 

#

Mr Darling replied that he had immediately asked for a thorough search by trained Customs officials, who are experienced in that type of search. On Monday 12 November people were "optimistic" the package would be found, but by Wednesday it was clear that wouldn't happen, so police were called in.

 

#

He also said the banks has asked for time to put in place "proper defences" before it was made public and he had discussed his decision with the Information Commissioner. He said he believed he had struck the right balance between informing the House of Commons and protecting the public.

 

#

Labour MP Mike Hall asked whether the NAO's original request had been compliant with the Data Protection Act.

 

#

Mr Darling said it had yet to be established who was involved at what level, what was asked for and how it was responded to. He said Sir John Bourn, the current NAO auditor general, said he would review what sort of information was being requested by the NAO.