Many government departments still allow employees to copy unencrypted information from internal databases
Staff in some of the biggest government departments can still freely copy unencrypted information from internal databases, in spite of the loss of nearly 30m personal records over the past two years. ... the health and transport departments allow employees to use USB memory sticks to copy unencrypted information. Such items have been the cause of several high-profile losses. ... A Cabinet Office report published in June recommended that encryption be used on all data when transferred to any sort of "removable media", such as memory sticks, discs or laptops.
Source: Financial Times