UK file-sharers will be 'cut off'

[LeoZwalf]

http://news.bbc.co.uk/1/hi/technology/8219652.stm

Scaremongering or really going to happen??! As I understand, it is impossible to tell what people are sharing across P2P or Torrent. So how can anyone (Govt, ISP, whoever) say whether a user is down/uploading legal or illegal files???