EMBATTLED Chancellor Alistair Darling's future was in doubt today after he admitted that the financial details of 25 million people had been "lost in the post".

MPs gasped when Mr Darling, with Prime Minister Gordon Brown at his side, admitted that two CDs containing the personal details of 7.2 million families had been sent to a government watchdog by the courier TNT without being recorded or registered.

"It appears the data has failed to reach the addressee," said Mr Darling.

He confessed that the details on the missing computer discs included names, addresses, dates of birth, child benefit numbers, national insurance numbers and bank or building society account details.

Paul Gray, chairman of the Revenue and Customs, which lost the discs, had resigned earlier and the Metropolitan Police have confirmed they are investigating the loss of the password protected discs which never arrived at the National Audit Office in London.

Mr Darling said in an emergency Commons statement that although they had not tracked down the CDs there was no evidence the information had found its way into the wrong hands. But police inquiries continue.

And the Shadow Chancellor and Tatton MP George Osborne said that half the country would now be very anxious about the safety of their family and their security.

"Today must mark the final blow for the ambitions of this government to create a national ID card. They simply cannot be trusted with people's personal information.

"Since you came to office less than six months ago you have lurched from one crisis to another," Mr Osborne told the Chancellor.

And the acting Liberal Democrat leader, Vince Cable, also mounting a fierce attack on the Government's competence, said it was now the Treasury which was "unfit for purpose", like the Home Office, and suggested that Mr Darling should consider his position in the Cabinet.

Yesterday the Chancellor got a rough ride in the Commons over the Northern Rock affair and his admission that the £24billion Bank of England loan to the troubled company may never be repaid to taxpayers.

Ministers often resign after a series of blows and the Chancellor's fate is now uncertain - although the Prime Minister, Gordon Brown, as former Chancellor, is likely to back him.

Downing Street said the Prime Minister had "full confidence" in Mr Darling, despite the benefits records blunder. A spokesman said Mr Darling had not offered to resign.

Gasps

In his statement in the Commons, greeted with astonished gasps, Mr Darling said a junior official within HM Revenue and Customs had sent the child benefit details of 25 million citizens, on two computer discs, by their internal post system operated by the courier TNT. He said they had vanished.

"On finding that the package had not arrived a further copy of this data was sent, this time by registered post, and which did arrive. However, the Revenue should never have let this happen," said the Chancellor.

He promised everyone involved that they would not have to pay out for any loss in their bank accounts if they were the innocent victims of fraud. He also assured MPs that child benefit payments would continue to be paid out as before, despite the blunder.

"The advice of banks is there's no need for customers to ask for a new account or to contact their bank or building society. But they should check their statements and keep a close eye on their account for any unusual activity...and should not give out personal or account details requested unexpectedly by phone or email," added the Chancellor.