UK businesses and public bodies are facing a stark new reality under the proposed Cyber Security & Resilience Bill: cybersecurity failures could soon cost up to £100,000 per day if organisations fail to protect critical systems or respond properly to breaches.
The bill, now moving through the policy and consultation stage, signals the government’s toughest stance yet on cyber resilience. It reflects growing concern that cyber attacks are no longer isolated IT problems but national economic and security threats.
Here’s what the bill proposes, who it affects, and why the potential fines are drawing serious attention across the UK.
What Is the Cyber Security & Resilience Bill?
The Cyber Security & Resilience Bill is designed to strengthen the UK’s cyber defences by tightening legal obligations on organisations that provide essential services or hold sensitive data.
The legislation builds on existing frameworks such as:
- Network and Information Systems (NIS) rules
- Data protection and breach reporting obligations
But it goes significantly further by introducing daily financial penalties for ongoing non-compliance.
Oversight would involve bodies working alongside the National Cyber Security Centre, which already advises organisations on cyber threats and best practice.
How the £100,000-Per-Day Fine Would Work
Under the proposed framework:
- Organisations that fail to secure systems, report incidents, or fix known vulnerabilities could face fines
- Penalties could apply per day, not as a one-off
- Maximum fines are expected to reach £100,000 per day for serious or prolonged breaches
This means a company that ignores or delays fixing a known vulnerability could rack up millions of pounds in fines within weeks.
The aim is to stop organisations from treating cyber incidents as low-priority or manageable risks.
Who Would Be Most Affected
The bill focuses on organisations considered essential to society and the economy.
Likely in scope are:
- Energy, water, and transport operators
- Healthcare providers and NHS-linked systems
- Financial services and payment processors
- Telecoms and digital infrastructure providers
- Large data processors and cloud service providers
However, the scope is expected to be broader than previous rules, pulling in more medium-sized businesses that support critical supply chains.
What Counts as a Cybersecurity Failure
Fines would not only apply after a successful hack.
Potential triggers include:
- Failure to implement basic security controls
- Ignoring known vulnerabilities
- Late or incomplete breach reporting
- Poor incident response planning
- Repeated weaknesses identified by regulators
In other words, preventive failure could be penalised just as heavily as a breach itself.
Why the Government Is Taking a Harder Line
Cyber attacks against UK organisations have increased sharply in both frequency and sophistication. Recent incidents have:
- Shut down hospital systems
- Disrupted transport networks
- Exposed millions of personal records
- Cost businesses hundreds of millions of pounds
The government argues that voluntary guidance is no longer enough.
The Department for Science, Innovation and Technology has said stronger penalties are needed to ensure cyber resilience is treated as a board-level responsibility, not just an IT issue.
How This Differs From Existing Fines
Current data protection fines are often:
- Issued months or years after an incident
- Capped as a percentage of turnover
- One-off penalties
The proposed bill introduces a continuous compliance model, where financial pressure increases the longer an organisation remains non-compliant.
| System | Old Approach | New Direction |
|---|---|---|
| Penalties | One-off fines | Daily penalties |
| Focus | After breach | Prevention + response |
| Responsibility | IT-led | Board-level |
| Enforcement | Slower | Ongoing |
What Organisations Should Do Now
Even before the bill becomes law, experts recommend action.
Organisations should:
- Review cyber risk at board level
- Patch known vulnerabilities promptly
- Test incident response plans
- Improve breach detection and reporting
- Audit third-party and supply-chain security
Waiting until the law is passed could prove extremely costly.
Questions Businesses Are Asking
Q1: Is the £100,000 fine automatic?
No. It would apply in serious or ongoing non-compliance cases.
Q2: Is this already law?
Not yet. It is progressing through legislative stages.
Q3: Does this apply to small businesses?
Primarily to essential and digital service providers, but scope may widen.
Q4: Is this in addition to GDPR fines?
Yes, it would sit alongside existing penalties.
Q5: Can fines be appealed?
Yes, but enforcement powers would be strong.
Q6: Does a single breach trigger daily fines?
Only if failures are not addressed promptly.
Q7: Are public bodies included?
Yes, particularly in critical sectors.
Q8: Who enforces the fines?
Sector regulators working with cyber authorities.
Q9: When could this take effect?
After legislation passes and implementation timelines are set.
Q10: What’s the biggest risk for organisations?
Ignoring known cyber weaknesses.
Bottom Line
The Cyber Security & Resilience Bill marks a major shift in how the UK treats cyber risk. By introducing fines of up to £100,000 per day, the government is sending a clear message: cybersecurity failures are no longer tolerable operational issues — they are legal and financial liabilities. For organisations that delay action, the cost of inaction could soon far exceed the cost of prevention.
Leave a Comment