City of Wolverhampton College purchased details of parents - claim

The college is said to have paid for up to 3,000 records at a time on parents of potential students to invite them to open days.

It is claimed the practice costs 15p per record.

The college is among many firms and organisations accused of trading in data, including schools, dentists and the Government. NHS dentists are allegedly buying information on patients to offer free treatments before convincing them to go private.

Joanne Clayton, owner of Data Bubble, claims City of Wolverhampton College, as well as Moulton College in Northamptonshire and Warwickshire College, has bought data from her.

She said: "I do a lot of work with colleges by providing them with parents data.

"Parents of 15, 16, 17 year olds – so they're a nice little earner for me, if I'm being honest.

"A lot of academies are wanting to speak to businesses in their local area.

"They may not have the business information so they'll come to me for the business data."

She has also obtained medical details on people with arthritis, diabetes, physical disabilities and even bladder problems.

She added: "We are a reputable data broker who supplies data legally. It is our responsibility as a data broker to supply data within the laws and regulations surrounding our industry and we take those responsibilities very seriously."

In a statement, City of Wolverhampton College said: "No details other than names and addresses of people who might be interested in further study were requested or obtained.

"The college has no plans to use this organisation's services in the future."

Moulton College has written in an online testimonial that it bought 10,000 records from Data Bubble and as a result 'our February Open Day was the busiest one we'd had for some time'.

Marketing director Andrea Hughes admitted the data was purchased to target children.

Meanwhile, Vince Cable's Department for Business, Innovation and Skills paid up to £15,000 to use one a data broker, entrusting it to manage an email campaign targeting small businesses across the country.

It bought half a million records, with contact addresses gathered by cold calling receptionists and coaxing information from them.

Andy Silvester, campaign director at the TaxPayers' Alliance added: "Civil servants should spend taxpayers' money as if it's their own, and that means checking who you're giving it to.

"It's vital that there are better safeguards in place so that taxpayers' money isn't subsidising firms who are engaging in such questionable practices.

"The Department needs to seriously consider its current position."

The Department for Business, Innovation and Skills said the deal with Prospect360 was arranged through a third party. It would not comment on the amount of taxpayers' money it spent.