According the the website linked in the article el reg also recieved this treatment
http://www.zone-h.org/news/id/4741
edit... that happened in 2011... why is it still on page two of the newsfeed
3 publicly visible posts • joined 21 Dec 2012
The checkbox to authorise them to view your account is described as this
* I authorise DWP to view my accounts, including job search activity, feedback and notes*
It doesn't specify what accounts you are letting them view and i'm sure this wont be open to interpretation at a later date.
I myself am currently jobless scum and this new job search website is far harder to use than the one it replaced, they removed the option to filter results by job sector. Want a job in IT? You have to guess what the likely job title is the employer is using. As for the suggested jobs, I don't think I’ve had one yet that is within 50 miles of where I live.