If they are doing this it comes under RIPA.
[http://en.wikipedia.org/wiki/Regulation_of_Investigatory_Powers_Act_2000]][
In a further case in 2010 Poole Borough Council was accused of spying unfairly on a family. Although the Council invoked powers under RIPA to establish whether a family fell into a certain school catchment area, when taken before the Investigatory Powers Tribunal it was found guilty of improper use of surveillance powers
Here's who to complain to
The 2000 Act established the Investigatory Powers Tribunal to hear complaints about surveillance by public bodies. The Tribunal replaced the Interception of Communications Tribunal, the Security Service Tribunal, and the Intelligence Services Tribunal with effect from 2 October 2000.
Between 2000 and 2009 the Tribunal has only upheld 4 out of 956 complaints
.... so a bit like the LGO then 