Civil Service in the news

Child Benefit Data - Her Majesty's Revenue and Customs

Sir Gus O'Donnell

Sir Gus O'Donnell has visited the offices at the centre of the HMRC data loss episode.

The Cabinet Secretary and Head of the Home Civil Service spent the day with staff at Waterview Park in Washington, Tyne and Wear. 2000 employees at the Child Benefit office - part of Her Majesty's Revenue and Customs (HMRC) - have been under intense media and public scrutiny in recent weeks following news of the two missing discs containing child benefit data.

Gus paid tribute to staff for responding to the crisis with professionalism and determination.

“This is an important moment for us in the Civil Service”, he said, “We must continue to do more to earn and retain the trust of the public we serve.”

“We have to learn from our mistakes and do everything we can to ensure we protect the data we hold across government and we are working urgently to do this. In the meantime we must build on the excellent work being done in many areas across the civil service every day.”

As part of the day, Gus met with staff from the Claimant Compliance unit. This team is working internally and across departments to strengthen systems and prevent identity fraud. Gus also spoke with operators in the Child Benefit Contact Centre who have been answering calls from customers on the incident.

In response to the child benefit data loss the Prime Minister has instigated two reviews looking into data handling and security procedures across government.

Cabinet Secretary’s Review of Data Handling Procedures:

The Prime Minister has asked the Cabinet Secretary to review data handling procedures across government. The review will be led by Robert Hannigan, Head of Intelligence, Security and Resilience in the Cabinet Office, working closely with heads of departments.

The review will be carried out in two stages. The first stage, to report to the Prime Minister before Christmas, will analyse current data procedures and systems across all departments and agencies. It will detail current action taken to mitigate risks and highlight areas for further improvements.

The second stage will look at how current standards can be improved across government and consider better compliance and audit arrangements. The aim is to complete this stage early in 2008.

The Poynter Review:

Simultaneous to the Cabinet Secretary's review, the Poynter Review will look at the specific events within HMRC that led to the data loss.

The Chancellor has asked Kieran Poynter, Chairman and senior partner of PricewaterhouseCoopers, to report initially on the exact circumstances by 14 December. This first stage of the review will consider whether any urgent measures need to be put in place within HMRC to guarantee confidentiality of personal data. It will also take account of the ongoing investigation by the Metropolitan Police.

The review will then consider the wider implications - in consultation with the Independent Police Complaints Commission (IPCC) and Information Commissioner - and make recommendations on whether data security procedures within HMRC (and in their work with other departments and agencies) should be changed. This final stage will report in the spring of 2008.


As part of his review, Kieran Poynter also visited the Child Benefit Office in Washington, Tyne and Wear. He accompanied Dave Hartnett, HMRC's acting chairman, to meet staff there at the end of November.

Dave Hartnett pledged to get HMRC back to delivering a “world class” service.

He said, “We can all be forgiven for feeling pretty bad in the last week, but we will get out of this together. You are renowned in HMRC for the pride you take in your work and please don't lose that.”

Kieran Poynter echoed this sentiment.

“I will use this recent loss of data to make recommendations to allow HMRC to have world-class data security.

“And 'world class' is the phrase I've been using when I've been talking to people about this. Our objective is to work together and, using HMRC people, deliver a world-class system that you all can be proud of.

“It'll be part of the process that will help to restore the reputation of HMRC.”