Patient data still at risk as health bill overturned

Under the proposals, commercial firms and researchers stood to lose their rights to anonymous patient records, putting data under the control of the Department of Health (DoH) instead.

But yesterday, Labour peers agreed to withdraw the proposals and consider them further.

Opposition Lords successfully argued that commercial firms were not misusing patient data. Conservative health spokesman Earl Howe told the House: "A great deal of pharmaceutical promotion emphasises the benefits of using cheaper alternatives."

Howe added: "The right kind of targeted marketing is aimed at GPs who prescribe poorly, inefficiently or wastefully and it can identify postcode rationing and over-costly prescribing. Those approaches are valuable to the NHS, so why stop them?"

But the government saw off a challenge to the controversial clause giving the Health Secretary control over access to named patient data.

The proposals came under heavy criticism from doctors, patient groups and privacy campaigners for corrupting the doctor-patient relationship. The government claims the legislation is designed to benefit research groups which need access to data even when patient consent cannot be obtained.

In order to diffuse the growing storm, the Bill was amended to include a Patient Information Advisory Group made up of DoH officials and outside organisations, to oversee the Health Secretary's powers.

Supporting Labour peer Lord Hunt of King's Heath said: "The fundamental principle of informed consent is right. But in the meantime we have to ensure the continued flow of patient information to some critical areas to protect the interests of the public and individual patients."

But despite the amendments, the government is unlikely to have appeased campaigners. A prediction supported by Liberal Democrat peer Baroness Northover.

"I have no doubt that it will not be long before we have a class action on this clause because it does not comply with the Data Protection Act or the Human Rights Act," she said.