UK proposes paying whistleblowers who report economic crime to the Serious Fraud Office

What happened

On 12 October 2026, the UK government published a consultation on whistleblowing that includes a proposed Serious Fraud Office (SFO) scheme to pay financial rewards to people who report economic crime. It was issued jointly by the business department, the Attorney General’s Office, the Home Office, and the SFO. It closes at 11:59pm on 8 January 2027.

Under the proposal, information would need to be significant and original and lead to a successful enforcement outcome against a company, such as a criminal conviction or a deferred prosecution agreement (DPA). Rewards would be paid from a percentage of the company’s penalty, and only once the case has concluded and all appeal rights are exhausted. The percentage range has not been set. The government also asks whether the scheme should have no cap.

Eligibility could exclude people with a legal duty to report, people culpable in the offending, and people who obtained the information dishonestly. Individuals could qualify regardless of where they are located or where the information originated. The plan follows recommendations in Part 2 of Jonathan Fisher KC’s Independent Review of Disclosure and Fraud Offences, published in July 2026.

The same consultation asks whether employers should have a statutory duty to run whistleblowing procedures and follow up disclosures, backed by civil penalties. One option would cover private sector employers with 50 or more employees and all public sector employers. It could exclude organisations already under equivalent rules, such as certain firms regulated by the UK Financial Conduct Authority (FCA).

Why it matters

A reward scheme would change the calculation for a potential whistleblower inside your firm. The consultation paper notes that UK nationals are the second largest overseas user group of the US Securities and Exchange Commission’s reward scheme. A domestic route with money attached would give employees a reason to go to the SFO first.

The firm’s calculation changes too. The paper says financial rewards may strengthen incentives for companies to identify and self-report wrongdoing. If the prosecutor might hear first, the time a firm has to make a credible self-report is likely to shrink.

Certain FCA-regulated firms already have whistleblowing requirements, so the statutory duty option would add little for them. Their unregulated group companies are a different matter, since one option would cover any private sector employer with 50 or more employees.

Practitioner angle

• Compare your speak-up channel with what an outside reward route offers: confidentiality, a fast response, and feedback to the person reporting. A 2024 survey cited in the paper found 36% of workers named confidentiality risk as the main reason they would not blow the whistle.
• Set a documented timeline for escalating credible fraud or bribery reports to legal and the board, so a self-report decision is not left waiting.
• Confirm that group companies outside the FCA perimeter have their own whistleblowing policy and procedure.
• Consider responding. The questions on eligibility, funding from penalties, and offences for knowingly false reports are all open.

Start by making sure every employee who reports internally hears back quickly.