Data stored in the UK could be at risk due to a lack of interest in encryption technology, a new report suggests.

Just 48 per cent of IT managers told Check Point that they used encryption technology to seal their data from hackers, while some 12 per cent claimed to not even know if it was in use on systems they manage or not.

However, the survey showed that there is support among a third of IT managers for instant dismissals if employees are found to have been negligent in dealing with sensitive data.

The study was launched following the data breach at Her Majesty's Revenue and Customs which released the personal data of some 25 million British people claiming child benefit.

But even though the loss of two unencrypted compact discs caused such uproar in the press and public, almost two thirds of UK IT managers questioned said they will not change their spending priorities to emphasise encryption in light of events.