Privacy campaigners have unearthed evidence that 132 local authorities have mislaid confidential data.
But only 55 out of 1,035 data breaches were reported to the Information Commissioner's Office (ICO), according to a report issued by Big Brother Watch.
Furthermore, personal information relating to around 3,100 children and young people was compromised in 118 cases, the study found.
Some 244 laptops or portable computers went missing, while at least 93 mobile devices and 98 memory sticks were lost. Nine incidents resulted in council staff being dismissed.
Buckinghamshire CC and Kent CC were the joint worst offenders with 72 incidents reported, followed by Essex CC (62), Northamptonshire CC (48) and North Yorkshire CC (46).
Of the remaining authorities surveyed, 263 replied that no losses had been reported and 38 did not participate.
Welcoming the research, housing minister Grant Shapps said the findings reinforce ‘the need for steps to protect the privacy of law-abiding local residents'.
Mr Shapps added: ‘Civil liberties are under threat from the abuse of town hall surveillance powers, municipal nosy parkers rummaging through household bins and town hall officials losing sensitive personal data on children in care.'
A representative from the ICO confirmed the data watchdog will this week submit a formal business case to the Ministry of Justice (MoJ) calling for powers to conduct compulsory information audits in the local government sector.
The spokesman said: ‘Our concern isn't just that councils have the right policies and procedures in place; it's about bringing about a culture among staff whereby everyone takes their responsibilities seriously and effective data handling becomes second nature.'