The government’s scheme to store patients’ medical information in a single database, which ran into massive problems over confidentiality, is to be scrapped, NHS England has said.

The decision to axe the scheme, care.data, follows the publication of two reports that support far greater transparency over what happens to the information, and opt-outs for patients who want their data seen only by those directly caring for them.

A review by the national data guardian, Dame Fiona Caldicott, and a second by the Care Quality Commission, recommended tougher measures to keep people’s medical information secure and confidential. The Caldicott review said there must be a much more extensive dialogue with the public as to how their information can be used.

While they must be told of the benefits of sharing their data – for the purposes of research into their disease, for instance – they must also know what else the data may be used for and how they can opt out if they do not want it shared.

“My recommendations centre on trust. Building public trust for the use of health and care data means giving people confidence that their private information is kept secure and used in their interests,” said Caldicott.

“Citizens have a right to know how their data is safeguarded. They should be included in conversations about the potential benefits that responsible use of their information can bring. They must be offered a clear choice about whether they want to allow their information to be part of this. I would encourage everyone to get involved in the consultation about the proposals that I am putting to government today.”

NHS England responded by saying care.data would be wound up, following Caldicott’s call for consent and opt-out measures that went much further than it envisaged.

“In light of Dame Fiona’s recommendations, NHS England has taken the decision to close the care.data programme,” it said in a statement. “However, the government and the health and care system remain absolutely committed to realising the benefits of sharing information, as an essential part of improving outcomes for patients. Therefore this work will now be taken forward by the National Information Board, in close collaboration with the primary care community, in order to retain public confidence and to drive better care for patients.”

Care.data ran into massive problems over the inadequate safeguards it was proposing for the healthcare information it would store on every NHS patient. In 2014, the Guardian revealed it could be sold to insurance or pharmaceutical companies.

It was halted by ministers in February 2014, less than a fortnight before the first patient records were due to be extracted, after concerns were raised that patients had not been sufficiently informed about the scheme. The Caldicott review was put in place as a result.

George Freeman, the government’s minister for life sciences, responded by announcing a consultation into Caldicott’s proposals on data security and a new consent/opt-out model. “To achieve our ambition of a fully digital NHS, it is vital that the public trusts health and care staff to keep their personal data safe and secure,” he said.

“It is vital that a full consultation and dialogue with the public and professionals takes place before any implementation of the recommendations can take place.”

