Prime Minister Tony Blair has rejected claims that the Government wanted to create a Big Brother-style "super-database" following criticism from civil liberties groups.
Mr Blair said "perfectly sensible" plans to share information between Government departments had been misrepresented.
He insisted that allowing such a move would prevent people having to give details repeatedly to different parts of Whitehall.
Speaking at a Downing Street seminar, he said: "This is a very good example of how a perfectly sensible thing can be misconstrued.
"The purpose of this is not to create a new piece of technology at all or a new database. This is about sharing data in a sensible way so that the customer gets a better public service."
The event at No 10, involving other senior ministers, was held to develop plans for so-called "citizens' panels" to consult ordinary voters as part of a Government policy review.
