The Data Protection Act could raise costs and hold back plans for 'joined-up' e-government unless it is amended, according to industry experts and users.

At present, the sharing of personal data between separate government agencies is prohibited by the Act. Marcus Robinson, a partner at IT consultancy Accenture, explained that this leads to a duplication of effort and reduced efficiencies among departments.

"If we are serious about joined up government we must consider legal change," he said, adding that greater sharing of information between NHS hospitals and social services could improve overall patient care, as well as reduce costs.

"Enterprise application integration can help departments to share data, but they must be permitted to do so," he said.

The government has proposed the appointment of guardians to oversee the exchange of data between health trusts and social services departments. But a report by public sector IT professional group The Society of IT Managers has suggested that over a third were concerned about legal problems.

Brian Westcott, the report's author, said: "Confidentiality of client or patient data is seen as a major obstacle to joint working. Many see a dichotomy between [data protection laws] which restrict information sharing, and the government's pressure to do more."

Robert Bell, head of innovation and technology at law firm Hobson Audley, maintained that dealing with the legal requirements of data sharing would pose problems. "Local government and other government agencies will face a difficult task when trying to simultaneously reassure the public, comply with the law and meet the 2005 target set by the government," he said.

A spokesman for the UK Information Commission was unaware of any plans to amend the Act, but explained that there were already ways to permit more data sharing.

However, convincing the general public that government departments should share their personal information requires improvements in security, advised Robinson.

DATA PROTECTION AMENDMENTS:

• Some observers are calling for an amendment to the Data Protection Act to allow government departments to share more information.
• Under current rules, sharing would be illegal in many instances, and this could hinder plans for joined up e-government services by 2005.
• Experts say that tightening security could make data sharing more palatable to the general public.