UK Security Minister confirms national security exemptions for ransomware payment ban

British Security Minister Dan Jarvis announced that national security exemptions will be included in the UK government's proposed ransomware payment ban, addressing concerns that the legislation could force critical organizations into impossible choices during cyberattacks.

What happened

Speaking at the Financial Times' Cyber Resilience Summit: Europe in London on December 3, Security Minister Dan Jarvis confirmed details about the ransomware payment ban proposal. The ban underwent public consultation from January to April 2025, receiving support from three-quarters of respondents. The UK government confirmed the ban in July and published a detailed policy paper on September 2. The proposed legislation would prohibit ransomware payments for public sector and critical national infrastructure organizations, while requiring other businesses to notify the government of any intent to pay ransoms. 

Going deeper

Provisions of the proposed ban:

• Complete prohibition on ransomware payments for public sector organizations
• Payment ban for critical national infrastructure (CNI) organizations
• Mandatory notification requirement for all other businesses considering ransom payments
• National security exemptions to prevent organizations from facing impossible choices

Implementation timeline and consultation:

• The legislation will be adopted "when parliamentary time allows"
• The government currently seeking agreement across departments
• Ongoing consultation with CNI organizations and private sector
• Focus on ensuring proposals work effectively

International coordination:

• The UK government is discussing the ban with Five Eyes allies
• Coordination with G7 member states also interested in similar bans

What was said

Security Minister Dan Jarvis explained the reasoning behind national security exemptions, stating the government has acknowledged warnings about potential negative consequences, "That's why we're looking very carefully at national security exemptions, because we don't want people to be facing an invidious choice between a hospital shutting down or going to jail."

Jarvis also criticized current ransomware payment practices, saying the arrangement for each organization to choose whether to pay is "not sustainable" as it doesn't offer organizations any meaningful guarantee they will get their data back.

Why it matters

The inclusion of national security exemptions acknowledges that bans without flexibility could force healthcare facilities, emergency services, and other essential organizations to choose between breaking the law or allowing critical systems to remain offline, potentially endangering lives. 

If the UK successfully implements this ban with Five Eyes and G7 allies following suit, it could create the first coordinated international framework to financially disincentivize ransomware attacks. Many ransomware organizations operate globally, targeting victims across multiple jurisdictions, so if the UK can successfully disincentivize these attacks, it could lay the groundwork for further threat prevention. Coordinated action could disrupt the ransomware business model by restricting access to ransom payments across different economies.

The bottom line

As this legislation progresses through Parliament, organizations in the public sector and critical infrastructure should begin preparing compliance frameworks and incident response plans that account for the ban. Private sector businesses should also establish notification protocols for ransom payment considerations. The success of this approach could set a precedent for international ransomware policy.

FAQs

How might the ransomware payment ban affect cyber insurance coverage for UK organizations?

Insurers may adjust policies, premiums, or payout conditions to align with new legal limits on ransom payments.

How could this ban influence ransomware negotiation practices used by incident response firms?

It may restrict negotiators’ ability to engage with attackers and increase emphasis on technical recovery instead of payment discussions.

Could the notification requirement for private businesses lead to faster government support during attacks?

Yes, early notification may allow authorities to provide intelligence, guidance, or assistance sooner.

How will this policy affect small and medium-sized enterprises with limited cybersecurity budgets?

They may face added pressure to strengthen defenses since paying ransoms becomes less viable.