UK Moves to Block Public Sector from Paying Ransomware Criminals

The UK government has announced comprehensive measures to combat ransomware attacks, including a prohibition on public sector organizations paying ransom demands to cybercriminals.

The new framework, unveiled on July 22, 2025, represents a significant escalation in Britain’s fight against cyber threats that have cost the economy millions of pounds annually and disrupted critical services including hospitals, schools, and local councils.

Under the proposed legislation, public sector bodies and operators of critical national infrastructure will be legally prohibited from paying ransom demands to cybercriminals.

This includes the NHS, local councils, schools, and other essential services that form the backbone of British society.

The measure received overwhelming support during public consultation, with nearly three-quarters of respondents backing the proposal.

The ban specifically targets the financial incentive structure that drives ransomware operations. By eliminating payments from high-value public sector targets, the government aims to make these critical services less attractive to criminal groups who typically encrypt systems and steal data until ransom demands are met.

Security Minister Dan Jarvis emphasized that ransomware represents “a predatory crime that puts the public at risk, wrecks livelihoods and threatens the services we depend on.”

The urgency of these measures has been underscored by recent devastating attacks. The British Library suffered a catastrophic ransomware incident in October 2023 that destroyed its technology infrastructure and continues to impact users.

More critically, an NHS organization recently identified a ransomware attack as contributing to a patient’s death, highlighting the potentially life-threatening consequences of these cyber assaults.

Private Sector Notification Requirements

While public sector organizations face an outright payment ban, private businesses will operate under a different regulatory framework.

Companies not covered by the prohibition must notify the government of any intent to pay ransom demands, enabling authorities to provide crucial guidance and support during critical decision-making periods.

This notification system serves multiple purposes beyond advisory support. The government can alert businesses if proposed payments would violate existing sanctions against cybercriminal groups, many of whom operate from Russia and other hostile nations.

Additionally, mandatory reporting requirements are being developed to equip law enforcement with essential intelligence for tracking perpetrators and disrupting their operations.

The reporting framework represents a significant shift toward collaborative cybersecurity defense, allowing authorities to better support victims while building comprehensive intelligence on ransomware operations.

This approach recognizes the complex reality facing private businesses while ensuring government oversight of ransom payment decisions.

Resilience Building Initiatives

Industry leaders have expressed strong support for the government’s comprehensive approach. Co-op CEO Shirine Khoury-Haq, whose company experienced firsthand the disruption caused by cyber attacks, welcomed the focus on cybercrime prevention.

The British Library’s Chief Executive Rebecca Lawrence emphasized the importance of sharing experiences to build collective resilience across institutions.

Beyond regulatory measures, the government continues advocating for proactive cybersecurity measures. Organizations are urged to maintain offline backups, develop tested operational continuity plans, and implement frameworks such as Cyber Essentials and the NCSC’s Early Warning service.

These measures form part of the government’s broader Plan for Change, designed to defend businesses, services, and infrastructure against evolving cyber threats while protecting the British public from increasingly sophisticated criminal operations.

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