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Welfare Tax Credits: Personal Data

Volume 460: debated on Friday 18 May 2007

To ask the Chancellor of the Exchequer how many individuals claiming tax credits have been notified that details of their bank account and sort code have been sent to another client. (136901)

HMRC are aware that a number of incorrect tax credit award notices have been sent out, including some containing partial information about another claimant’s tax credit claim. This was caused by an isolated problem with one of the printers. HMRC take confidentiality very seriously and have robust procedures in place to protect information provided by claimants. As soon as they became aware of the incident, they corrected the problem with the printer and have taken steps to ensure there can be no recurrence. HMRC established that the incident affected around 42,000 families. In particular, 8,000 notices were sent out which contained some bank account details for a claimant other than the recipient.

HMRC’s immediate priority was to protect claimants' personal data and to ensure the correct information was provided to tax credit claimants. HMRC wrote to all claimants affected to apologise for this mistake; to provide the correct tax credit award notice; to advise them of the action that HMRC has taken to protect affected claimants; and to provide information on what further steps claimants may wish to take in response to this incident.

As a precautionary measure HMRC immediately alerted the banking industry who issued a general alert to the banks. HMRC also provided the information necessary for the banks of affected claimants to put the appropriate safeguards in place. HMRC also informed the Information Commissioner. HMRC’s current safeguards should prevent any fraudulent tax credits claims based on the information released.