Nationwide Outage Disrupts Banking and HMRC Services
Thousands of users across the UK were left unable to access online services on Tuesday morning after a major Amazon Web Services (AWS) disruption caused widespread outages at HM Revenue & Customs (HMRC) and leading banks.
According to Downdetector, there were 6,925 outage reports at Lloyds Bank at around 9:31am, with similar spikes seen for Snapchat, Slack, and Ring.
The disruption began shortly after 9am and affected a broad range of services that rely on AWS the world’s largest cloud computing provider which supports critical digital infrastructure for both government and private sector organisations.
HMRC Confirms Online Access Issues
HMRC confirmed that its digital services were temporarily down due to the global outage, leaving users unable to log in or submit online forms.
A spokesperson said:
“We are aware of problems accessing our online services, as part of global issues affecting AWS. Our phone lines are busier than usual, and we appreciate customers’ patience while the issue is resolved.”
The disruption came at a critical time, as taxpayers prepare for self-assessment filing deadlines, amplifying frustration among individuals and businesses trying to access key HMRC services.
AWS Identifies and Resolves Underlying Issue
Amazon Web Services later revealed that the problem stemmed from a DNS (Domain Name System) issue, which temporarily affected service connectivity.
By 10:27am, AWS reported “significant signs of recovery,” and just over an hour later confirmed the underlying issue had been fully mitigated.
AWS said in a statement:
“We have resolved the DNS-related problem that impacted connectivity for some users earlier this morning. All services are now operating normally.”
Impact on Banks and Digital Platforms
In addition to Lloyds, several other banks including Barclays and NatWest were hit by online and mobile banking issues, with customers reporting problems logging in or making payments.
The outage also affected popular digital platforms such as Slack, Snapchat, and Ring, highlighting the vast reach of AWS’s cloud infrastructure.
Tech analysts noted that such incidents reveal the fragility of modern digital ecosystems, where a single cloud provider’s failure can ripple through multiple sectors simultaneously.
Experts Warn of Over-Reliance on Cloud Infrastructure
Cybersecurity and IT experts have once again warned that the UK’s heavy reliance on a handful of global cloud providers leaves both government and businesses vulnerable to single points of failure.
Dr. Mark Skelton, a digital infrastructure expert, said:
“When AWS experiences an outage, the ripple effect is immediate. It reinforces the need for multi-cloud strategies and stronger contingency planning across sectors.”
The National Cyber Security Centre (NCSC) has previously urged critical service providers to diversify their cloud operations to improve digital resilience.
Services Return to Normal but Questions Remain
By midday, most affected systems including HMRC’s tax portal and major online banking services had been restored. However, the temporary disruption caused confusion for thousands of customers and underscored the risks of centralised cloud dependency.
AWS said it will conduct a full post-incident review to prevent similar outages in the future. Meanwhile, HMRC has encouraged users still facing issues to try again later or access support through its helpline.