Hi, welcome to silkysteps. Protecting confidential information is a legal requirement of the data protection act.
Protecting the information you collect will involve what data it is, why it was collected, where it's stored, who has access to it, why individuals have access to it, what needs to happen to it after any length of time.
You'll find more information in the
early years framework for your home nation and in the policies and procedures your setting has in place.
Data protection prinicples on ICO.org.uk
Best wishes