http://www.nzherald.co.nz/technology/news/article.cfm?c_id=5&objectid=10813180
That's a lot of personal information to be collecting!
"The bill would force providers companies such as the BT Group PLC or Virgin Media Inc. to log where emails, tweets, Skype calls and other messages were sent from, who was sending them, who they were sent to, and how large they were. Details of file transfers, phone calls, text messages and instant conversations, such as those carried over BlackBerry Messenger, would also be recorded.
The bill demands that providers collect IP addresses, details of customers' electronic hardware, and subscriber information, including names, addresses, and payment information.
What May didn't mention in her editorial and the Home Office left off its press release was that the government also is seeking to keep logs of citizens' internet history, giving officials access to the browsing habits of roughly 60 million people including sensitive visits to medical, dating, or pornography websites.
Prefer to send mail the old-fashioned way? That would be monitored, too. Address details and other markers printed onto envelopes would be copied; parcel tracking information would be logged as well."
tldr; British government wants to track basically all communications.