<text>  Data firms trading in medical and financial records are working for state schools, dentists and the Government, it emerged last night. Colleges admitted buying data on children from a company exposed by the Mail for selling pensioners health secrets. NHS dentists are also allegedly buying information on patients to offer free treatments before convincing them to go private. Scroll down for video . Vidya Mishra, who runs data firm Prospect 360, claimed he sells data to NHS dentists so they can target poor people, who are more likely to have poor teeth . Dentists then allegedly try to convince the patients to pay for private follow up treatments, according to Mr Mishra pictured in an undercover video Vince Cables Department for Business, Innovation and Skills, meanwhile, paid up to 15,000 to use one a data broker exposed by the Mail, 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. The deal has emerged a day after David Cameron described the Mails revelations about the sale of personal data as extremely serious and said he expected serious penalties to be imposed. The Governments champion for older workers, Dr Ros Altmann, said: Taxpayers will not want their money spent on enriching firms that have shown such careless disregard for citizens rights. Andy Silvester, campaign director at the TaxPayers Alliance added: Civil servants should spend taxpayers money as if its their own, and that means checking who youre giving it to. Its vital that there are better safeguards in place so that taxpayers money isnt subsidising firms who are engaging in such questionable practices. The Department needs to seriously consider its current position. The Mail revealed yesterday how medical details on people with arthritis, diabetes, physical disabilities and even bladder problems were sold to an undercover reporter by Joanne Clayton, owner from Data Bubble. Joanne Clayton pictured of Data Bubble revealed that her firm sells data on local parents to state academies, universities and higher education colleges . For 15p each, the colleges buy at least 3,000 records a time on parents in their catchment areas to invite them to open days . She also revealed her firm sells data on local parents to state academies, universities, and higher education colleges Moulton College in Northamptonshire, City of Wolverhampton College and Warwickshire College. For 15p each, the colleges buy at least 3,000 records a time on parents in their catchment areas to invite them to open days. I do a lot of work with colleges by providing them with parents data, said Mrs Clayton, who also works as a hypnotherapist. Parents of 15, 16, 17 year olds so theyre a nice little earner for me, if Im being honest. A lot of academies are wanting to speak to businesses in their local area. They may not have the business information so theyll come to me for the business data. Moulton College writes 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 wed had for some time. Marketing director Andrea Hughes admitted the data was bought to target children. We... purchased a list of parents of Year 11 children within a ten-mile radius of the college, she said. We had no cause for concern around Data Bubble and believe the mailing was successful.We have no plans to use Data Bubble again. Undercover reporters from the Mail also contacted data broker Prospect360. With Data Bubble, it was one of three firms whose names were passed to the paper as having sold personal information on pensioners which ended up in the hands of people suspected of being involved in a major fraud. Mr Mishra revealed that the Department for Business, Innovation and Skills was one of his clients . He boasted that the Government had commissioned his firm to create and send out hundreds of thousands of emails under a scheme, to help small businesses at a cost of ten, fifteen thousand pounds Asked where they obtained the firms email addresses, Mr Mishra said call centres phoned receptionists to ask for information . Prospect360 managing director Vidya Mishra offered to sell personal pensions data for as little as 5p a time and spoke of the benefits of targeting the vulnerable when making cold calls. Mr Mishra, whose wife is a dentist, also claimed he sells data to NHS dentists so they can target poor people, who are more likely to have poor teeth. Dentists then allegedly try to convince the patients to pay for private follow up treatments. Mr Mishra, 44, revealed that the Department for Business, Innovation and Skills was one of his clients. He boasted that the Government had commissioned his firm to create and send out hundreds of thousands of emails under a scheme, to help small businesses at a cost of ten, fifteen thousand pounds. Asked where they obtained the firms email addresses, Mr Mishra said call centres phoned receptionists to ask for information. Warwickshire College admits online that it has used Data Bubble again and again and have no hesitation in recommending them but said yesterday it will await the outcome of the investigation by the ICO before deciding whether to use them again. 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 organisations services in the future. 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. Mrs Clayton said: 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. Mr Mishra said: We buy and supply data in good faith. We never do anything underhand and we never misguide people. 