Spoke to The Information Commissioner's Office -
http://www.ico.gov.uk/ and they say they are 'looking into it'. You can ring them on 01625 545 745, so at least the powers at be are aware of current events.
So until this story fully unfolds my advice would be to use TOR -
http://www.torproject.org/ and take back the some of that privacy and anonymity that our ISP's have so 'kindly' tossed into the bin!