Indeed there is such a power in s77 of the Act. It has not been exercised nor does there seem to be much inclination to do so at present, so far as I am aware. ICO would be consulted before any implemenation - see s77(4). If it ever were implemented ICO would clearly be involved in any prosecution process, even if the formal responsibility was with the police or CPS.
In practice a custodial sentence is usually available for significant breaches by using alternative routes such as the Computer Misuse act , or the common law offences such as Misconduct in Public Office (where relevant - often used against police officers breaching DP/confidentiliaty) . That may be one reason why there is no great push to change.
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