Government pledges £121 million boost for quantum tech

Hopes to tackle fraud, prevent money laundering and drive economic growth

Investment sparks hope for economic growth, but questions linger over delivery

The UK government has unveiled a £121 million investment package for quantum technology to tackle fraud, prevent money laundering and drive economic growth over the next 12 months.

Announced to mark World Quantum Day on 14 April 2025, the funding will flow through Innovate UK, the National Quantum Computing Centre (NQCC), and other bodies to develop practical applications.

Science and Technology Secretary Peter Kyle framed the investment as an effort to back the country’s “world-class quantum researchers and businesses” and an important aspect in the government’s ambitious Plan for Change. He adds that the investment “has the potential to save millions for our economy, create thousands of jobs and improve businesses across the country.”

The UK’s push to commercialise quantum technologies began in 2014 with the launch of the National Quantum Technologies Programme (NQTP), which initially invested £214 million in four university-led hubs focused on communications (University of York), sensing and timing (University of Birmingham), enhanced imaging (University of Glasgow), and computing (University of Oxford). Since then, over £1 billion has been committed to quantum research, with last year’s £100 million boost establishing five new hubs in healthcare and cybersecurity.

This new package assigns £46.1 million via Innovate UK for computing, networking, and sensing, £21 million to the NQCC for testbeds, and £10.9 million to the National Physical Laboratory for measurement tools. The funding also includes allocations to other initiatives, such as 11 Quantum Technology Career Acceleration Fellowships (£15.1 million) and Quantum-enabled apprenticeships (£4.3 million), both supported by the Science and Technology Facilities Council to back early-career researchers.

This distribution channel looks well-mapped out but some people have questioned whether the fragmentation seen in prior efforts can be avoided this time. A former Treasury and Home Office official recently criticised the governmentfor lacking proper oversight around its investments in digital technology.

How the UK fairs in the global quantum tech race

The government claims the UK is the world's second-largest hub for quantum businesses, after the US. However, other countries like China are also investing heavily in quantum technology initiatives. In terms of funding, Qureca’s data shows that China leads the field with an estimated $15 billion in funding, while the US has committed around $7.7. The UK’s total investment, which now sits at $4.3 billion, puts it ahead of Germany and France, and Canada, but behind the US and China.

Whilst this investment signals a strong interest in quantum technology, it is unlikely to be sufficient to give the UK an edge in the race to develop world-leading quantum solutions.