The latest breakdown in government data security

Reports of the latest breakdown in governmental data security, the loss of a memory stick containing personal details about tens of thousands of criminals has been making the news this morning. The memory stick was lost by PA Consulting and apparently the lost data includes details of around 10,000 prolific offenders as well as information on all 84,000 prisoners in England and Wales.

One remark caught my eye and that is that Dominic Grieve, the shadow Home Secretary, said

"The British taxpayer will be absolutely outraged if they are made to pick up the bill for compensation to serious criminals."

Why is there any chance of having to pay compensation to any of these prisoners? Were the parents whose details were compromised last year ever thought to be due compensation?