How better to stop dissent than to make people fear that their views might get them into trouble. The legislation creates a modern day, electronic, Panopticon, less about what the Government can or wish to do with the your personal data, and more about creating an environment where people are put off expressing or seeking out views that might dissent from those of the wider public or government.
Sure, you could use Tor or a VPN to hide what you are looking for, but how long before your browsing history becomes a valid area of investigation in a job interview? You want to become a teacher, or drive a train, but oh dear, your browsing history is hidden through the use of a VPN, so clearly you have something to hide, and you are not suitable for a responsible position.
Toe the line, use the internet for cat videos and to read news and political information that has been deemed appropriate by Facebook and Twitter, like the other 95% of the population, and you have nothing to fear. The remaining 5% are the ones to watch because they either have something to hide or they are mavericks.