What you need to know

Understanding The Cyber Security & Resilience Bill

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The need for improved cyber resilience

The UK’s critical national infrastructure is under unprecedented pressure in the face of a dynamic and evolving cyber threat landscape. High-profile incidents have exposed the weaknesses in prominent UK businesses and infrastructure. As attackers continue to become more sophisticated, the effects are increasingly being felt across supply chains, essential services and the wider economy. These developments are driving the next generation of cyber regulation.

“Recent cyber-attacks affecting the NHS and Ministry of Defence show the impacts can be severe. Our laws have not kept pace with technological change, so we need to take swift action to address vulnerabilities and protect our digital economy to deliver growth.”

Department for Science, Innovation and Technology

Understanding the Cyber Security and Resilience Bill

The UK’s Cyber Security and Resilience (CSR) Bill introduces a significant upgrade to existing national cyber regulation. As cyber threats grow in scale and sophistication, the CSR Bill marks a decisive shift towards more robust oversight of essential services and their digital ecosystems. The CSR builds on the UKs Network and Information Systems (NIS) Regulations 2018 and is designed to reflect lessons learned since their introduction - while also generally aligning with the EU’s updated NIS 2 Directive.

What changes under the Bill?

The CSR Bill expands the businesses in scope of NIS Regulation requirements, introduces stricter reporting obligations and stronger enforcement powers. It brings managed service providers and data-centre operators into regulation for the first time and creates a new category of “designated critical suppliers” who support essential services.

Who will be affected?

The CSR Bill will affect a broad range of organisations that deliver, support, or enable the UK’s essential services and digital infrastructure.

Existing Operators of Essential Services (OES)

  • Energy (electricity, gas, oil)
  • Transport (air, rail, road, maritime)
  • Healthcare (NHS trusts, integrated care boards, independent providers)
  • Water
  • Digital Infrastructure (definition expanded to include a wider range of digital services)
  • Data Centre & Digital infrastructure Operators
    Operators that meet defined capacity or service thresholds will be required to maintain strong security and resilience capabilities, evidence of risk assessments and protect the availability and integrity of the services they host.
  • Large Load controllers
    The CSR Bill brings large load controllers into scope as OES, requiring them to meet strengthened cyber and resilience standards, rapidly report incidents, and manage risks across the systems and suppliers involved in controlling aggregated electrical loads.
  • Managed Service Providers
    The Bill introduces statutory duties to implement appropriate and proportionate security and resilience measures across the services provided, including systems used to manage client environments.
  • Designated critical suppliers
    Those designated as critical suppliers, whose products or services are essential to maintaining national resilience.

In addition to those directly regulated, the Bill will influence a much wider ecosystem. Organisations that rely on third-party IT providers or critical digital infrastructure are likely to face increased due-diligence requirements, contractual changes, and stronger expectations around supply-chain cyber assurance. International companies serving UK customers may also be captured where their services underpin UK essential functions.

Requirements of the CSR

The CSR Bill represents a significant enhancement of the UK cyber regulatory regime of expectations rather than a continuation of the status quo. The Bill introduces:

  • Broader incident reporting requirements
    Organisations must report major incidents far more quickly within 24 hours for early notification and 72 hours for a full report requiring more mature detection, escalation, and response capabilities.
  • Strengthened supply chain security
    Supply-chain resilience becomes a statutory obligation. Regulators will get new powers to identify and designate specific high-impact suppliers as ‘designated critical suppliers’ (DCS), with obligations equivalent to those of Operators of Essential Services (OES).
  • Enhanced enforcement powers
    OES also face broader oversight, as regulators gain new powers to request information proactively, conduct inspections, and issue turnover-based penalties for serious failings.
  • Meeting the objectives of the Cyber Assessment Framework
    Organisations are increasingly expected to demonstrate alignment with the NCSC’s Cyber Assessment Framework (CAF), the CAF documents cyber security risk management outcomes across cyber domains and contains over 400 indicators of good practice which organisations should aim to achieve in a manner that can be demonstrated to regulators.

The Bill also elevates resilience expectations, requiring operators to demonstrate robust continuity planning; risk management and governance aligned to national standards.

What ‘no-regrets’ steps can organisations take now?

Attaining and maintain a defensible compliance position with the requirements of the CSR and the NCSC CAF can be a challenging undertaking for organisations, it also represents an opportunity to change the way your organisation manages cyber risk and create a resilience business for the future.

Minimum viable business and scoping

Identify and document the critical processes, systems and assets which are critical to business operations and define your NIS Scope boundary.

Readiness Review

Gain an independent view of cyber posture against the NCSC Cyber Assessment Framework requirements to determine baseline maturity and readiness. Consider the alignment with CAF objectives you would be able to demonstrate today.

Cyber Roadmap Development

Develop a roadmap to uplift cyber maturity for your defined scope based on CAF and CSR requirements, to build a defensible compliance position.

Remediation and Implementation

  • Implement improvement plans, embedding sustainable capabilities across your organisation.
  • Develop your organisation’s ability to identify, assess, and manage cyber risks effectively, implement the necessary governance and control measures to ensure long-term resilience and compliance with regulatory requirements.

Incident Response Retainer

Our specialist Cyber Incident Response team, an assured National Cyber Security Centre (NCSC) Cyber Incident Response (CIR) Enhanced Level provider, can offer a NIS 2 Directive-aligned incident response retainer to help your organisation prepare for, respond to, and recover from cyber incidents in line with the Directive’s requirements

Next Steps

The Cyber Security and Resilience Bill will require significant effort from organisations to meet required cyber standards. Business leaders need to clarify their organisation’s position under the regulation and take steps to ensure they are managing cyber risk in a manner proportionate to their role in critical national infrastructure.

Contact us

Andrew Miller

Andrew Miller

Cyber Security Partner, PwC United Kingdom

Tel: +44 (0)7715 484519

Simon Borwick

Simon Borwick

Partner, PwC United Kingdom

Tel: +44 (0)7867 196473

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