Compensation claims after discs lost

Dec 23 2007 by Michael Kelly, Sunday Sun

THE Government is facing a multi-million pound compensation payout to families over the lost child benefit discs blunder.

Letters of apology are being sent to 25 million parents whose personal details were on two CDs which went astray in the post last month.

A massive search of offices, mail depots and even a rubbish tip has failed to trace the discs, which hold the names, addresses, dates of birth and often bank details of 7.2 million households receiving child benefit.

Now a legal expert is advising victims of the astonishing foul-up — when a Revenue and Customs junior official at their HQ in Washington, Tyne and Wear, failed to send the unencrypted discs to the National Audit Office in London by recorded delivery — to claim compensation.

Chris Shaw, manager of Newcastle-based legal services company ADRS, said: “A letter saying sorry for their mistake is all very well. But they have failed to mention that the loss of this personal information is a clear breach of the Data Protection Act.

“Under the law, anyone affected by the loss of their personal data is entitled to claim compensation from those who were responsible for mishandling it.”

Mr Shaw estimates that individual payouts could range from £50 to £300 with “significantly higher” amounts for people who have suffered damage and distress.

Data protection laws do not define “damage” but courts have ruled in previous cases that compensation should be paid in similar cases.

Two years ago a man was awarded £300 after he received unsolicited marketing emails from a company who had not been authorised to release his personal details.

Mr Shaw added: “This could prove very costly for the Government if families affected by the postal error take up their right to pursue a compensation claim.

“Even at a modest estimate the Treasury may have to shell out £300m and it could be a lot higher.

“Many people have been asking why HMRC hasn’t been held accountable financially for what happened. It seems the vast majority of those who have been affected don’t realise they have recourse to the law”

Dave Hartnett, acting head of HMRC, said in his letter: “I would like to offer my personal apologies for any worry or concern this data loss may cause you.

“And I can assure you that all efforts are being made to ensure that such a loss can never happen again.”

A team of 32 Scotland Yard detectives is working on the hunt for the missing discs and the Met Police have said there is no evidence they have fallen into criminal hands.

Revenue and Customs chiefs have offered a £20,000 reward for information leading to the safe return of the lost CDs.

Anybody who wants to make a compensation claim can log on to the website www.compensationpack.com