UK Outlaws Ransomware Payments by Government Agencies

The UK government has confirmed plans to outlaw ransomware payments across the entire public sector and critical‑national‑infrastructure landscape—everything from the NHS and local councils to water, energy and transport operators—marking one of the world’s toughest attempts to dismantle the business model that fuels cyber‑extortion. Published on 22 July, a Home Office news story says the forthcoming legislation will “smash the cyber‑criminal business model” by making it explicitly illegal for public bodies to transfer money to attackers, while forcing all other UK organisations to notify Whitehall before paying any ransom so ministers can warn them if the transaction would violate sanctions law. Almost three‑quarters of respondents to a recent ransomware consultation backed a public‑sector ban, and the measure is now billed as a central plank of the government’s Plan for Change cyber‑strategy. 

Security Minister Dan Jarvis framed the crackdown as both a moral and economic imperative, citing multimillion‑pound hits to British retailers, a patient death linked to an NHS ransomware incident and the near‑total shutdown of the British Library after its 2023 breach. Under the forthcoming rules, any private‑sector company that still contemplates paying will have to contact the government first, giving the National Cyber Security Centre and National Crime Agency vital intelligence on attack patterns and, crucially, an opportunity to warn if the ransom route involves sanctioned Russian or North‑Korean gangs. 

Read More: A Massive Ransomware Known As WannaCry Hit The Entire World Today But Here’s How To Stay Protected

BleepingComputer notes that mandatory reporting and payment bans place the UK in line with the US state of Florida and Australia’s essential‑services regime but go further by covering the entire public sector and requiring pre‑payment notification for everyone else. Critics warn that companies might reroute payments through foreign subsidiaries, yet supporters argue even partial bans raise operational risk for attackers: if hospitals, schools and utilities can’t pay, they become less attractive targets. 

The government still urges every organisation to harden defences—offline backups, incident‑response rehearsals and Cyber Essentials frameworks—because technology, not policy, ultimately keeps systems running. But once the new bill passes Parliament, UK public bodies will have no legal route to pay off hackers, and British businesses will have to think twice before wiring Bitcoin to criminals who have locked their files. For ransomware crews accustomed to easy payouts, Westminster’s message is stark: the UK is closing the cash tap.