The programme aims to improve the lives of families across England experiences problems surrounding poor school attendance, crime, mental and physical health problems, unemployment, domestic violence and financial exclusion.
DCLG claims it wants to ensure public money is being spent wisely and so will be collecting information and evidence and sharing it with local authorities to determine how successful Troubled Families is.
The Department will be taking data from both families who have partaken in the scheme and those who have not and comparing the two sets of information.
The data collected is being shared with the Office of National Statistics (ONS), which has protocols in place to ensure the safety of personal data and other information gathered.
A privacy notice published by DCLG claims that no individuals will be identifiable in any information published and great care will be taken to all personal identifiers and similar information.
"DCLG has asked local authorities to provide information on all families who are being supported by the Troubled Families Programme across England. We have also asked for information about families who are not being supported as part of the Programme, but who face similar problems," the document claims.
"This is so DCLG can compare the progress families make with the help of the Troubled Families Programme with those who did not receive the same help.
"The information being used for research includes the personal data held by local authorities in order to provide services to families; this includes names, dates of birth and postcodes. It also includes the information that is routinely collected by government Departments such as school attendance and attainment information, details of criminal offences, and welfare benefits date and employment status information," it adds.