Prison officers' data missing

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The loss of the data by private computing firm EDS was reported to the Prison Service in July, but it was not until now that Mr Straw was informed of the problem.

According to a letter from EDS seen by the News of the World, the hard-drive contains information including names, dates of birth, National Insurance numbers and Prison Service employee numbers. It was last seen as long ago as July 2007.

In a statement, Mr Straw said: "I am extremely concerned about this missing data. I was informed of its loss at lunchtime and have ordered an urgent inquiry into the circumstances and the implications of the data loss and the level of risk involved.

"I have also asked for a report as to why I was not informed as soon as my department became aware of this issue. My officials are also in touch with EDS as part of these processes. We take these matters extremely seriously."

The incident is the latest in a string of data losses to embarrass the Government, including the disappearance last October of two computer discs containing personal details of 25 million child benefit claimants.

The Prison Officers' Association said the loss, which it had not been informed about, could end up costing the taxpayer millions of pounds.

National chairman Colin Moses said: "We are extremely concerned that not only has this data been lost, but that the Prison Service appear to have tried to conceal this serious breach in security.

"It is a breach that we believe could ultimately cost the taxpayer millions and millions of pounds, because, if the information lost is personal and sensitive, it may well mean staff having to move prisons, move homes and relocate their families. This obviously will have a significant cost to the taxpayer.

"We believe that the people who have tried to conceal this serious breach should be brought to account and we are calling on Jack Straw to fully investigate this matter and ensure that justice is seen to be done."