The chairman of Her Majesty's Revenue and Customs (HMRC), Paul Gray, has quit after confidential details of 25 million people who receive child benefits, were lost by the department.

This comes only weeks after an HMRC external courier lost a package containing the details of 15,000 Standard Life pensions clients.

The Chancellor of the Exchequer, Alistair Darling, has called for a full investigation into the HMRC's security processes and procedures with a full report expected early next year.