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On Nov. 26, 2025, the United Kingdom’s tax authority announced the launch of a new whistleblower program, the Strengthened Reward Scheme — its most significant whistleblower reform effort in decades. While the UK has long been viewed as culturally cynical toward whistleblowers, this new program signals a shift toward more effective corruption enforcement and collect unpaid taxes by incentivizing and protecting those who come forward.

For years, the National Whistleblower Center (NWC) has worked harmoniously with UK leaders, while also urging them to adopt two core structural pillars that have proven essential in U.S. programs: mandatory rewards and guaranteed confidentiality. Although the UK’s program stops short of mandating rewards, it nevertheless takes a meaningful step by formally establishing a rewards mechanism, marking a regulatory breakthrough.

This Sunday Read explores the significance of the Strengthened Reward Scheme’s launch and what might be in the UK’s future as it enters a new chapter in global anti-corruption enforcement.

A Turning Point for a System Long Viewed as Flawed

The Strengthened Reward Scheme is outlined in the UK’s 2025 Budget and will take effect on April 6, 2026. The announcement comes against the backdrop of a substantial tax gap, which totaled £46.8 billion in the 2023-24 tax year, according to data from His Majesty’s Revenue and Customs (HMRC), the agency charged with enforcing the new program. The House of Commons’ Ninth Report of Session 2024–25 estimates that the UK lost about £5.5 billion in unpaid taxes in the 2023–24 fiscal year (as part of the tax gap).

The term “whistleblower” does not appear once in the budget nor the UK’s guidance on reporting fraud; a cooperative individual is instead referred to as an “informant.” The scheme offers informants a discretionary percentage of up to 30% of the taxes recovered if their tip leads to the collection of at least £1.5 million. The scheme targets serious tax evasion or avoidance — typically involving large companies, wealthy individuals, or offshore avoidance arrangements.

“The scheme aims to close the multibillion-dollar tax gap created by habitual tax evaders and fraudsters,” said Benjamin Calitri, an associate in the U.S.-based whistleblower law firm Kohn, Kohn & Colapinto. “That the HMRC is spending millions to expand the size and capacity of its debt management staff demonstrates the severity of the problem and their commitment to a solution. This is an incredible development for whistleblowers around the world, and will hopefully lead to a new trend of global whistleblower reward programs that are both effective at fighting corruption and protecting whistleblowers.”

Examining the Root Cause of the UK’s About Face

For decades, UK whistleblowers faced steep odds under the Public Interest Disclosure Act (PIDA). The Act received criticism for its complexity and impracticality, since the legal fees incurred outweighed the awards that were not usually worth the risk of an individual coming forward.

Meanwhile, the UK faced mounting pressure from watchdog organizations and international partners over persistent issues such as money laundering and tax evasion. Researchers noted that the country is a global hub for illicit financial flows, with an estimated 40% of the world’s dirty money moving through UK financial systems.

As Whistleblower Network News recently reported:

• Informant reports to HMRC has increased significantly, but actual payments to whistleblowers dropped by 13% in the latest year, despite a 9% rise in reports.
• More than 700 UK whistleblowers have chosen to report through the US system since 2012, citing insufficient incentives at home.
• The UK’s prior informant program operated on an ad hoc and discretionary basis, leading to inconsistent and often lower rewards compared to U.S. fixed-percentage models.

Momentum for reform grew due to the lack of trust in the prior whistleblower system. Senior officials at the Serious Fraud Office (SFO) have publicly endorsed rewards. Independent think tanks, including the Royal United Services Institute (RUSI), have issued detailed recommendations supporting a comprehensive rewards model.

As Calitri wrote in July 2025 for The Banker, “What the US Can Teach the UK on Whistleblowing,” bringing a claim under PIDA was “an uphill battle,” with claimants forced to go “toe to toe with their employer” and subjected to exhaustive scrutiny over their disclosures and their motives. The result, he noted, was a system in which individuals who previously reported wrongdoing were more likely to be punished than protected.

Why Rewards Matter

The UK’s new program includes the option, though not the requirement, to grant rewards. This is progress, but the distinction matters because discretionary rewards may undermine predictability or trust.

U.S. programs such as those administered by the SEC, CFTC, and IRS include mandatory, percentage-based rewards, which have proven to be one of the strongest tools in global anti-corruption enforcement. As NWC has long emphasized, rewards:

• Encourage insiders with critical information to come forward, especially when the risks to their careers or safety are high.
• Shift incentives, making corruption unprofitable and whistleblowing viable.
• Expand enforcement reach, since whistleblowers become essential partners in uncovering misconduct regulators would not otherwise detect.

According to U.S. government reporting, whistleblower reward programs have returned billions to the public and facilitated major enforcement actions worldwide. For example, the SEC’s Office of the Whistleblower Report for the Fiscal Year 2024 noted that the Commission awarded more than $255 million – the third-highest amount – to 47 individual whistleblowers, bringing the gross value of awards to $2.2 billion since the program’s inception in 2011.

Why NWC Advocates For Mandatory Rewards and Confidentiality

Crucially, U.S. programs also guarantee confidentiality, which is a key area in which NWC has urged the UK to strengthen its approach. Furthermore, NWC has consistently warned UK policymakers that no whistleblower program can succeed without guaranteed confidentiality, and not just discretionary or conditional protections.

“Confidentiality and anonymity also offer additional benefits to whistleblowers,” Calitri wrote in Columbia Law School’s Blue Sky Blog in October 2025. “When whistleblowers are confidential, wrongdoers must directly address the well-documented accusations themselves, rather than distracting from the issues with ad hominem attacks against the whistleblower – ensuring that legal proceedings focus on the wrongdoing in question.”

In the U.S., anonymity is recognized as the best protection. A whistleblower cannot be retaliated against if no one knows they filed a report. This structural feature is the key reason U.S. whistleblower programs continue to function effectively even in periods of shifting enforcement priorities.

“Without the combination of confidentiality and mandatory rewards,” Calitri said, “the UK risks creating a system that encourages whistleblowing in theory but fails to support it in practice.”

A Step Forward — and What Comes Next

The launch of the UK’s whistleblower rewards program marks a meaningful cultural shift in a nation where whistleblowers have often been marginalized or punished. For NGOs, journalists, human rights defenders, and regulators, the program offers a new path to uncovering fraud, corruption, sanctions violations, money laundering, and tax evasion at home and abroad.

With about five months until the scheme takes effect, the core question is whether the UK and HMRC will strongly enforce the new law. Should the program prove effective, amendments in future budget reports – such as mandatory rewards and stronger confidentiality guidelines – could be added.

“If the UK builds on this foundation, it could transform from a jurisdiction where whistleblowers are shamed, into one where they are protected and valued,” Calitri said. “And in the worldwide fight against corruption, that shift would be historic.”

For Whistleblowers Seeking Representation

The decision to come forward is not one to be taken lightly, nor should the decision to select a whistleblower lawyer. NWC provides resources that can connect you with the right legal professional before taking any action.

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This article was written by Justin Smulison, a professional writer, podcaster, and event host based in New York.