Neighbours paid to spy on neighbours

The British local councils has gone one step further to catch people in the act, by paying people who reports them. From littering to dawb graffiti people would get paid cash. The bigger the prosecution larger is 'reward' which can be up to £500:

If a court summons is issued the snooper gets £100. On a conviction he gets £150 and if the offender gets a maximum sentence he receives £500. dailymail.co.uk

Why would anyone work if they could just walk around and wait for someone to do something wrong. What to me was the most shocking part of this whole thing is, is that they even have children working for them.

Some UK councils are even paying children to supply them with information on environmental offences like leaving recycling bags and rubbish bins out on the pavement.

Ealing Council, in West London, employs hundreds of Junior Streetwatchers, aged between eight and ten. Harlow Council, in Essex, employs 25 Street Scene Champions, aged between 11 to 14 who are encouraged to report vandalism to bus shelters, graffiti, abandoned vehicles, fly-tipping and other offences. dailymail.co.uk

I understand they are trying to keep the streets clean and it is all for the 'greater good' but what will this lead to? They are stripping people of their privacy and natural human rights to just be. I have been in England that was about 4 years ago then it was bad. Everyone was suspicious of everyone and it was not a very welcoming feeling with all the surveillance going one. The streets, especially in London is very littered but is the cost of peoples dignity and freedom worth it?