UK Government Cracks Down on Ransom Payments During Ransomware Attacks

Ransomware remains one of the most disruptive and costly threats facing organisations today. In response, the UK Government has set out new measures to restrict ransom payments, aiming to disrupt the criminal business model and reduce the country’s appeal as a target. In this article, we explore what these changes mean for both public and private organisations, and the practical steps you can take to prepare.

The UK Government has taken bold new steps to tackle ransomware by effectively pulling the financial rug out from under cybercriminals. In a series of proposed measures, public sector bodies such as the NHS, local councils, and schools are to be outright banned from paying ransom demands. At the same time, private organisations will need to notify the government before making any payment, allowing authorities to weigh in and ensure compliance with sanctions laws.

These moves are designed to target the core of the ransomware business model and discourage attackers by making UK institutions less attractive targets. The government is keen to ensure that criminal gangs, many of whom are under international sanctions, cannot be inadvertently funded via ransom payments.

Furthermore, there’s a strong push toward mandatory incident reporting, which would equip law enforcement with vital intelligence to disrupt criminal networks. Organisations planning to pay must first engage in a government review process, and payments potentially breaching sanctions can be blocked.

However, the proposals have drawn mixed reactions. Supporters argue they send a clear message and help to dismantle criminal incentives, while critics warn that without sufficient safeguards, public services could suffer, or even collapse, if unable to pay during emergencies.

Why This Matters

Ransomware is now one of the UK’s most serious cyber threats, costing businesses and public services millions each year and potentially putting lives at risk – NHS disruptions have even contributed to patient fatalities.

The overall aim is to stem the flow of funds to criminal operators, especially those behind Ransomware-as-a-Service (RaaS). Removing the expectation that ransoms will be paid could gradually make the UK less of a target.

How Does This Affect UK Businesses?

For private-sector companies, the changes are not an outright ban, at least not yet, but they do represent a significant shift in both legal and operational responsibilities.

If you run a private business and suffer a ransomware attack, you will still technically have the option to pay, but with two important caveats:

• Mandatory notification – before making any payments, you must inform the government. This will likely involve providing details of the incident, the attackers, and the payment method.
• Sanctions screening – the government will assess whether the recipient is linked to a sanctioned individual or group. If they are, payment would be illegal, regardless of business impact.

From a practical perspective, this means businesses may face delays in making decisions under time-sensitive pressure, potentially increasing downtime. It also adds a compliance risk – if you pay without following the rules, you could face legal action or fines.

Some business leaders have voiced concerns that the extra hurdles could leave them in a worse position during an attack, especially where critical systems are at stake. On the other hand, cybercrime experts argue that these measures could reduce the UK’s attractiveness as a target, ultimately lowering the risk across the board.

In short: private businesses aren’t banned from paying ransoms, but the bar for doing so has been raised, and the legal exposure for getting it wrong is now much higher.

How to Prevent Ransomware Attacks

While policy shifts are critical, practical steps are essential too. Here’s what organisations of all types can do:

• Maintain offline and secure backups, ideally following the 3-2-1 strategy (three copies, on two formats, one off-site). Practice restoring data so you’re ready if things go wrong.
• Implement strong cyber basics. Use frameworks like Cyber Essentials, keep software patched and up to date, enforce multi-factor authentication, and train employees in spotting phishing and social engineering attempts.
• Develop a rigorous Incident Response Plan. Know exactly who does what if ransomware strikes. Include communication strategies, clearly defined roles, and tabletop rehearsals. Keep an out-of-band communication method ready, such as a second network or offline phones.
• Cyber insurance and resilience testing. Review policies carefully, ensure they support your breach preparedness, and regularly run simulations to refine your response capabilities.
  

What to Do If You Suffer a Ransomware Attack

Even with all the preparation in the world, breaches can still happen. Here’s how to respond confidently, and lawfully:

• Report immediately. If you’re a public or critical infrastructure body, you must not pay, and must report the incident. If you’re a private organisation considering payment, you must notify the government before doing so. This gives authorities a chance to advise or block if sanctions are involved.
• Engage authorities and experts. The government can guide you, help explore non-payment recovery options, and determine whether paying could break sanctions laws.
• Execute your Incident Response Plan. Begin your recovery steps, including restoring backups, communicating to stakeholders, and continuing operations where possible; always with safety and continuity in mind.
• Legal and regulatory compliance. Be mindful of potential legal consequences of paying, especially if the ransomware group is a designated or sanctioned entity. Cooperating early helps you avoid unintended breaches.
• Post-incident review. After resolving the incident, conduct a thorough review. Update your security posture, revisit training and incident plans, and address any gaps you discover.
  

How AJC Can Help

At AJC, we work with organisations to strengthen resilience against ransomware and other cyber threats. Our services include:

• Penetration testing to uncover vulnerabilities before attackers do.
• Cyber resilience reviews to assess your readiness against evolving ransomware tactics.
• Incident Response planning and tabletop exercises tailored to your operations.
• Compliance and regulatory guidance to help you navigate sanctions laws and reporting requirements.

If you’d like support in building ransomware resilience or ensuring your organisation is prepared for these new rules, please get in touch.

Contact us on 020 7101 4861 or email us at info@ajollyconsulting.co.uk if you think we can help.

Sources

https://www.gov.uk/government/consultations/ransomware-proposals-to-increase-incident-reporting-and-reduce-payments-to-criminals/ransomware-legislative-proposals-reducing-payments-to-cyber-criminals-and-increasing-incident-reporting-accessible

https://www.gov.uk/government/news/uk-to-lead-crackdown-on-cyber-criminals-with-ransomware-measures

https://assured.co.uk/2025/six-reasons-why-the-governments-ransom-payment-ban-wont-work/

https://www.itpro.com/security/ransomware/75-percent-of-uk-business-leaders-are-willing-to-risk-criminal-penalties-to-pay-ransoms

https://www.theguardian.com/technology/2025/jul/22/uk-government-to-ban-public-bodies-from-paying-ransoms-to-hackers

https://www.tomshardware.com/tech-industry/cyber-security/uk-to-ban-making-ransomware-payments-for-some-organizations-targets-public-sector-bodies-and-operators-of-critical-national-infrastructure

https://www.techradar.com/pro/security/the-uk-wants-to-ban-some-organizations-from-paying-ransomware-demands

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