This is why it is critical to encrypt all communications using a trusted provider or doing it yourself with PGP, if you have the skills to do it.

Whether or not this interception is currently legal / illegal, this has been happening on a massive, global scale. The UK is just catching up to France / USA / Canada in this regard. The EU legislation on the books for Saas, ISPs to log all their traffic for an indeterminate time is also a huge cause for concern.

Shameless plug: Use PrivateSky.