Weightmans: UK Government Ransomware Payment Ban: What Does it Mean for Businesses?

Introduction

In a watershed moment, the UK government has announced that it will move forward with plans to ban ransomware payments by public sector bodies and critical national infrastructure (CNI) organisations. This decision follows a public consultation, in which 72% of respondents supported the proposed ban. Cyber experts from Weightmans were involved in the discussions behind this bill. Here, we reflect on the implications of this decision for UK businesses.

What does the decision entail? 

The ban is intended to protect vital services, including healthcare, local government, defence and transport, from ransomware attacks by reducing their appeal as targets to cybercriminals. Nearly half of all ransomware headlines in 2023 related to healthcare, government or education. The Synnovis attack in June 2024 led to over 10,000 appointments postponed and months of disruption across NHS Trusts. Full system recovery took nearly four months. The public sector is evidently a high-value target, and a high-impact one too.

Beyond just public sector bodies and CNI organisations, the UK is facing an unprecedented surge in ransomware attacks with Suzanne Grimmer at the National Crime Agency predicting 2025 to be the worst year on record. Cybercrime is no longer the domain of a select few, it’s a booming industry. Ransomware-as-a-Service (RaaS) has lowered the bar, enabling young, tech-savvy criminals to launch ever more sophisticated attacks.

Under the new rules, private sector organisations will still be allowed to pay ransoms but must notify the government if they intend to do so. Victims will also be warned that paying sanctioned groups could breach UK law. This is intended to disrupt the ransomware business model and better protect essential public services.

As part of the wider policy package, the government also plans to introduce a mandatory incident reporting regime and increase international collaboration to crack down on ransomware gangs. This constitutes a significant intervention by the UK government and goes much farther than any other government in attempting to disrupt the ransomware business model.

What has the reaction been from experts?

While this is a bold move, there is a risk of underestimating the complexity of the issue. The UK might be painting a target on its own back. It is optimistic to assume these measures will divert criminal attention elsewhere. A more likely outcome is retaliatory escalation, as ransomware gangs seek to protect their lucrative business models and to deter other countries from following suit.

This decision could also risk pushing ransomware attacks further underground, with victims who believe they have no alternative but to pay finding ways around the ban, such as using third-party intermediaries to handle payments for them. Some organisations may also choose to mislabel ransomware attacks to avoid scrutiny or potential penalties.

There are also serious questions about scope. With modern supply chains as complex as they are, the lines between CNI, public sector and private enterprise are anything but clear. How can such a regime be effectively policed when critical services are delivered through outsourced arrangements, cross-border dependencies and layered vendors?

Conclusion

This decision although bold, isn’t a silver bullet – it is just the beginning. There is no one-size-fits-all fix for ransomware. But by combining ambition with nuance, and enforcement with support, the UK could set a powerful global example. On the other hand, if the UK becomes a proving ground for RaaS retaliation, it must be ready for the consequences.

Find out more about Weightmans: Click Here