diff --git a/admin/settings/courses.php b/admin/settings/courses.php
index 88fbdef20a4..321ce449762 100644
--- a/admin/settings/courses.php
+++ b/admin/settings/courses.php
@@ -97,7 +97,6 @@ if ($hassiteconfig
     $temp->add(new admin_setting_configcheckbox_with_lock('backup/backup_general_users', new lang_string('generalusers','backup'), new lang_string('configgeneralusers','backup'), array('value'=>1, 'locked'=>0)));
     $temp->add(new admin_setting_configcheckbox_with_lock('backup/backup_general_anonymize', new lang_string('generalanonymize','backup'), new lang_string('configgeneralanonymize','backup'), array('value'=>0, 'locked'=>0)));
     $temp->add(new admin_setting_configcheckbox_with_lock('backup/backup_general_role_assignments', new lang_string('generalroleassignments','backup'), new lang_string('configgeneralroleassignments','backup'), array('value'=>1, 'locked'=>0)));
-    $temp->add(new admin_setting_configcheckbox_with_lock('backup/backup_general_user_files', new lang_string('generaluserfiles','backup'), new lang_string('configgeneraluserfiles','backup'), array('value'=>1, 'locked'=>0)));
     $temp->add(new admin_setting_configcheckbox_with_lock('backup/backup_general_activities', new lang_string('generalactivities','backup'), new lang_string('configgeneralactivities','backup'), array('value'=>1, 'locked'=>0)));
     $temp->add(new admin_setting_configcheckbox_with_lock('backup/backup_general_blocks', new lang_string('generalblocks','backup'), new lang_string('configgeneralblocks','backup'), array('value'=>1, 'locked'=>0)));
     $temp->add(new admin_setting_configcheckbox_with_lock('backup/backup_general_filters', new lang_string('generalfilters','backup'), new lang_string('configgeneralfilters','backup'), array('value'=>1, 'locked'=>0)));
@@ -144,7 +143,6 @@ if ($hassiteconfig
     $temp->add(new admin_setting_heading('automatedsettings', new lang_string('automatedsettings','backup'), ''));
     $temp->add(new admin_setting_configcheckbox('backup/backup_auto_users', new lang_string('generalusers', 'backup'), new lang_string('configgeneralusers', 'backup'), 1));
     $temp->add(new admin_setting_configcheckbox('backup/backup_auto_role_assignments', new lang_string('generalroleassignments','backup'), new lang_string('configgeneralroleassignments','backup'), 1));
-    $temp->add(new admin_setting_configcheckbox('backup/backup_auto_user_files', new lang_string('generaluserfiles', 'backup'), new lang_string('configgeneraluserfiles','backup'), 1));
     $temp->add(new admin_setting_configcheckbox('backup/backup_auto_activities', new lang_string('generalactivities','backup'), new lang_string('configgeneralactivities','backup'), 1));
     $temp->add(new admin_setting_configcheckbox('backup/backup_auto_blocks', new lang_string('generalblocks','backup'), new lang_string('configgeneralblocks','backup'), 1));
     $temp->add(new admin_setting_configcheckbox('backup/backup_auto_filters', new lang_string('generalfilters','backup'), new lang_string('configgeneralfilters','backup'), 1));
diff --git a/backup/converter/moodle1/handlerlib.php b/backup/converter/moodle1/handlerlib.php
index f0c97541ca9..dd09fd4c637 100644
--- a/backup/converter/moodle1/handlerlib.php
+++ b/backup/converter/moodle1/handlerlib.php
@@ -441,7 +441,6 @@ class moodle1_root_handler extends moodle1_xml_handler {
             'users'            => 0, // @todo how to detect this from moodle.xml?
             'anonymize'        => 0,
             'role_assignments' => 0,
-            'user_files'       => 0,
             'activities'       => 1,
             'blocks'           => 1,
             'filters'          => 0,
diff --git a/backup/moodle2/backup_final_task.class.php b/backup/moodle2/backup_final_task.class.php
index b9f7251f78b..abbecb8be79 100644
--- a/backup/moodle2/backup_final_task.class.php
+++ b/backup/moodle2/backup_final_task.class.php
@@ -64,7 +64,7 @@ class backup_final_task extends backup_task {
         // done in a single pass
         $this->add_step(new backup_annotate_all_question_files('question_files'));
 
-        // Annotate all the user files (conditionally) (private, profile and icon files)
+        // Annotate all the user files (conditionally) (profile and icon files)
         // Because each user has its own context, we need a separate/specialised step here
         // This step also ensures that the contexts for all the users exist, so next
         // step can be safely executed (join between users and contexts)
diff --git a/backup/moodle2/backup_root_task.class.php b/backup/moodle2/backup_root_task.class.php
index fc65242647a..011a7b5f602 100644
--- a/backup/moodle2/backup_root_task.class.php
+++ b/backup/moodle2/backup_root_task.class.php
@@ -96,13 +96,6 @@ class backup_root_task extends backup_task {
         $this->add_setting($roleassignments);
         $users->add_dependency($roleassignments);
 
-        // Define user_files (dependent of users and anonymize)
-        $userfiles = new backup_user_files_setting('user_files', base_setting::IS_BOOLEAN, true);
-        $userfiles->set_ui(new backup_setting_ui_checkbox($userfiles, get_string('rootsettinguserfiles', 'backup')));
-        $this->add_setting($userfiles);
-        $users->add_dependency($userfiles);
-        $anonymize->add_dependency($userfiles, setting_dependency::DISABLED_TRUE);
-
         // Define activities
         $activities = new backup_activities_setting('activities', base_setting::IS_BOOLEAN, true);
         $activities->set_ui(new backup_setting_ui_checkbox($activities, get_string('rootsettingactivities', 'backup')));
diff --git a/backup/moodle2/backup_settingslib.php b/backup/moodle2/backup_settingslib.php
index fe39f2cf9a2..31e3c7374f1 100644
--- a/backup/moodle2/backup_settingslib.php
+++ b/backup/moodle2/backup_settingslib.php
@@ -80,13 +80,6 @@ class backup_activities_setting extends backup_generic_setting {}
  */
 class backup_anonymize_setting extends root_backup_setting {}
 
-/**
- * root setting to control if backup will include
- * user files or no (images, local storage), depends of @backup_users_setting
- * exactly in the same way than @backup_anonymize_setting so we extend from it
- */
-class backup_user_files_setting extends backup_anonymize_setting {}
-
 /**
  * root setting to control if backup will include
  * role assignments or no (any level), depends of @backup_users_setting
diff --git a/backup/moodle2/backup_stepslib.php b/backup/moodle2/backup_stepslib.php
index b87e3cc4117..78d272144ee 100644
--- a/backup/moodle2/backup_stepslib.php
+++ b/backup/moodle2/backup_stepslib.php
@@ -1768,10 +1768,6 @@ class backup_annotate_all_user_files extends backup_execution_step {
         // List of fileareas we are going to annotate
         $fileareas = array('profile', 'icon');
 
-        if ($this->get_setting_value('user_files')) { // private files only if enabled in settings
-            $fileareas[] = 'private';
-        }
-
         // Fetch all annotated (final) users
         $rs = $DB->get_recordset('backup_ids_temp', array(
             'backupid' => $this->get_backupid(), 'itemname' => 'userfinal'));
diff --git a/backup/moodle2/restore_root_task.class.php b/backup/moodle2/restore_root_task.class.php
index ac3f81d823f..319fe08ccd7 100644
--- a/backup/moodle2/restore_root_task.class.php
+++ b/backup/moodle2/restore_root_task.class.php
@@ -125,19 +125,6 @@ class restore_root_task extends restore_task {
         $this->add_setting($roleassignments);
         $users->add_dependency($roleassignments);
 
-        // Define user_files (dependent of users)
-        $defaultvalue = false;                      // Safer default
-        $changeable = false;
-        if (isset($rootsettings['user_files']) && $rootsettings['user_files']) { // Only enabled when available
-            $defaultvalue = true;
-            $changeable = true;
-        }
-        $userfiles = new restore_user_files_setting('user_files', base_setting::IS_BOOLEAN, $defaultvalue);
-        $userfiles->set_ui(new backup_setting_ui_checkbox($userfiles, get_string('rootsettinguserfiles', 'backup')));
-        $userfiles->get_ui()->set_changeable($changeable);
-        $this->add_setting($userfiles);
-        $users->add_dependency($userfiles);
-
         // Define activitites
         $defaultvalue = false;                      // Safer default
         $changeable = false;
diff --git a/backup/moodle2/restore_settingslib.php b/backup/moodle2/restore_settingslib.php
index 6be3cc21830..09f92fe0d34 100644
--- a/backup/moodle2/restore_settingslib.php
+++ b/backup/moodle2/restore_settingslib.php
@@ -49,13 +49,6 @@ class restore_users_setting extends restore_generic_setting {}
  */
 class restore_role_assignments_setting extends root_backup_setting {}
 
-/**
- * root setting to control if restore will create
- * user files or no (images, local storage), depends of @restore_users_setting
- * exactly in the same way than @restore_role_assignments_setting so we extend from it
- */
-class restore_user_files_setting extends restore_role_assignments_setting {}
-
 /**
  * root setting to control if restore will create activities
  * A lot of other settings (_included at activity levels)
diff --git a/backup/moodle2/restore_stepslib.php b/backup/moodle2/restore_stepslib.php
index e62129bf76b..58048ec59a2 100644
--- a/backup/moodle2/restore_stepslib.php
+++ b/backup/moodle2/restore_stepslib.php
@@ -684,7 +684,7 @@ class restore_create_included_users extends restore_execution_step {
 
     protected function define_execution() {
 
-        restore_dbops::create_included_users($this->get_basepath(), $this->get_restoreid(), $this->get_setting_value('user_files'), $this->task->get_userid());
+        restore_dbops::create_included_users($this->get_basepath(), $this->get_restoreid(), $this->task->get_userid());
     }
 }
 
diff --git a/backup/util/dbops/backup_controller_dbops.class.php b/backup/util/dbops/backup_controller_dbops.class.php
index cd89d82f55f..dffdb8d73a0 100644
--- a/backup/util/dbops/backup_controller_dbops.class.php
+++ b/backup/util/dbops/backup_controller_dbops.class.php
@@ -440,7 +440,6 @@ abstract class backup_controller_dbops extends backup_dbops {
             'backup_general_users'              => 'users',
             'backup_general_anonymize'          => 'anonymize',
             'backup_general_role_assignments'   => 'role_assignments',
-            'backup_general_user_files'         => 'user_files',
             'backup_general_activities'         => 'activities',
             'backup_general_blocks'             => 'blocks',
             'backup_general_filters'            => 'filters',
diff --git a/backup/util/dbops/restore_dbops.class.php b/backup/util/dbops/restore_dbops.class.php
index 58342b2a59a..25f2e533d1c 100644
--- a/backup/util/dbops/restore_dbops.class.php
+++ b/backup/util/dbops/restore_dbops.class.php
@@ -730,7 +730,7 @@ abstract class restore_dbops {
      * ready to be created. Also, annotate their newids
      * once created for later reference
      */
-    public static function create_included_users($basepath, $restoreid, $userfiles, $userid) {
+    public static function create_included_users($basepath, $restoreid, $userid) {
         global $CFG, $DB;
 
         $authcache = array(); // Cache to get some bits from authentication plugins
@@ -871,10 +871,6 @@ abstract class restore_dbops {
                 // Create user files in pool (profile, icon, private) by context
                 restore_dbops::send_files_to_pool($basepath, $restoreid, 'user', 'icon', $recuser->parentitemid, $userid);
                 restore_dbops::send_files_to_pool($basepath, $restoreid, 'user', 'profile', $recuser->parentitemid, $userid);
-                if ($userfiles) { // private files only if enabled in settings
-                    restore_dbops::send_files_to_pool($basepath, $restoreid, 'user', 'private', $recuser->parentitemid, $userid);
-                }
-
             }
         }
         $rs->close();
diff --git a/backup/util/helper/backup_cron_helper.class.php b/backup/util/helper/backup_cron_helper.class.php
index 8631be6488d..b3599757157 100644
--- a/backup/util/helper/backup_cron_helper.class.php
+++ b/backup/util/helper/backup_cron_helper.class.php
@@ -323,7 +323,6 @@ abstract class backup_cron_automated_helper {
             $settings = array(
                 'users' => 'backup_auto_users',
                 'role_assignments' => 'backup_auto_role_assignments',
-                'user_files' => 'backup_auto_user_files',
                 'activities' => 'backup_auto_activities',
                 'blocks' => 'backup_auto_blocks',
                 'filters' => 'backup_auto_filters',
diff --git a/backup/util/ui/renderer.php b/backup/util/ui/renderer.php
index 08454409e31..b1e302c8681 100644
--- a/backup/util/ui/renderer.php
+++ b/backup/util/ui/renderer.php
@@ -97,7 +97,9 @@ class core_backup_renderer extends plugin_renderer_base {
         $html .= html_writer::start_tag('div', array('class'=>'backup-section settings-section'));
         $html .= $this->output->heading(get_string('backupsettings', 'backup'), 2, array('class'=>'header'));
         foreach ($details->root_settings as $label=>$value) {
-            if ($label == 'filename') continue;
+            if ($label == 'filename' or $label == 'user_files') {
+                continue;
+            }
             $html .= $this->backup_detail_pair(get_string('rootsetting'.str_replace('_','',$label), 'backup'), $value?$yestick:$notick);
         }
         $html .= html_writer::end_tag('div');
diff --git a/lang/en/backup.php b/lang/en/backup.php
index 0116d50c36f..a2cea189cbf 100644
--- a/lang/en/backup.php
+++ b/lang/en/backup.php
@@ -86,7 +86,6 @@ $string['configgeneralhistories'] = 'Sets the default for including user history
 $string['configgenerallogs'] = 'If enabled logs will be included in backups by default.';
 $string['configgeneralroleassignments'] = 'If enabled by default roles assignments will also be backed up.';
 $string['configgeneraluserscompletion'] = 'If enabled user completion information will be included in backups by default.';
-$string['configgeneraluserfiles'] = 'Sets the default for whether user files will be included in backups.';
 $string['configgeneralusers'] = 'Sets the default for whether to include users in backups.';
 $string['confirmcancel'] = 'Cancel backup';
 $string['confirmcancelquestion'] = 'Are you sure you wish to cancel?
@@ -127,7 +126,6 @@ $string['generalgradehistories'] = 'Include histories';
 $string['generallogs'] = 'Include logs';
 $string['generalroleassignments'] = 'Include role assignments';
 $string['generaluserscompletion'] = 'Include user completion information';
-$string['generaluserfiles'] = 'Include user files';
 $string['generalusers'] = 'Include users';
 $string['importfile'] = 'Import a backup file';
 $string['importbackupstage1action'] = 'Next';
@@ -200,7 +198,6 @@ $string['rootsettings'] = 'Backup settings';
 $string['rootsettingusers'] = 'Include enrolled users';
 $string['rootsettinganonymize'] = 'Anonymize user information';
 $string['rootsettingroleassignments'] = 'Include user role assignments';
-$string['rootsettinguserfiles'] = 'Include user files';
 $string['rootsettingactivities'] = 'Include activities';
 $string['rootsettingblocks'] = 'Include blocks';
 $string['rootsettingfilters'] = 'Include filters';
diff --git a/lib/db/upgrade.php b/lib/db/upgrade.php
index df9b3f88060..8aa90d81c62 100644
--- a/lib/db/upgrade.php
+++ b/lib/db/upgrade.php
@@ -187,6 +187,15 @@ function xmldb_main_upgrade($oldversion) {
         upgrade_main_savepoint(true, 2012021700.02);
     }
 
+    // The ability to backup user (private) files is out completely - MDL-29248
+    if ($oldversion < 2012030100.01) {
+        unset_config('backup_general_user_files', 'backup');
+        unset_config('backup_general_user_files_locked', 'backup');
+        unset_config('backup_auto_user_files', 'backup');
+
+        upgrade_main_savepoint(true, 2012030100.01);
+    }
+
     return true;
 }
 
diff --git a/version.php b/version.php
index 52b1122b6a0..190f235d90f 100644
--- a/version.php
+++ b/version.php
@@ -30,7 +30,7 @@
 defined('MOODLE_INTERNAL') || die();
 
 
-$version  = 2012030100.00;              // YYYYMMDD      = weekly release date of this DEV branch
+$version  = 2012030100.01;              // YYYYMMDD      = weekly release date of this DEV branch
                                         //         RR    = release increments - 00 in DEV branches
                                         //           .XX = incremental changes