Information Technology in the UK [jobs & market research]

Growth of IT Jobs and Workforce in the UK

IT jobs keep growing across the UK. In 2023, about 2.13 million people worked in tech roles, up 3.4% from the year before. These IT careers range from software development and network engineering to data science and IT support. Digital skills now reach far beyond technology firms. Roughly 58% of tech workers support finance, retail, manufacturing and public services, while 42% work in dedicated tech companies. This shows how deeply Information Technology runs through the whole economy.

The workforce spreads across the country, yet big cities still lead. London employs around one in five tech workers, and more than 7% of all jobs there are IT jobs. Manchester, Edinburgh and Leeds also host strong tech clusters. To widen growth, the government launched a £500 million Local Innovation Partnerships Fund in 2025. The fund backs IT projects in Glasgow, Cardiff, Belfast and Greater Manchester, so every region shares the benefits of digital work.

Strong demand means solid pay. The median tech salary sits near £44,950, over 50% higher than the national median. Unemployment in tech stays low, but companies struggle to hire enough skilled people in software development, cybersecurity and data analysis. Women and minority groups remain under-represented compared with their share of the overall workforce. Schools, bootcamps and training programmes now focus on closing these gaps, so the sector keeps its momentum.

Innovation and Emerging Technologies

The UK keeps pushing new tech forward. By 2025 the country hosts more than 150 unicorn startups worth at least $1 billion each, the largest count in Europe. When you add up just eight leading university cities, they produce more billion-dollar tech firms than France and Germany combined. London’s tech scene alone is worth more than $690 billion, and places like Cambridge, Oxford, Manchester and Edinburgh run strong hubs for AI, life sciences, advanced materials, fintech and gaming.

Artificial Intelligence moves fastest. UK startups pulled in over $1 billion in venture funding during the first quarter of 2025, the biggest first quarter haul in three years. The government plans to make the UK an AI superpower. Leaders met in London at the first AI Safety Summit in late 2023. Ministers launched the Frontier AI Taskforce to guide safe development and push adoption in health care, transport and more. By 2025 half of teachers will try generative AI for lesson planning, and nearly three quarters of teenagers use chatbots for homework.

Other emerging fields thrive as well. A growing cybersecurity industry defends systems worldwide. Researchers race to lead quantum computing. Green tech firms design better electric vehicle batteries and smarter power grids, matching national climate goals. Fintech stays a crown jewel; UK digital banks and payment apps serve millions around the world. Four of the world’s top ten universities sit in the UK, and a network of accelerators and investors turns ideas into businesses.

Funding still tilts toward London. Founders in other regions say raising capital takes longer, and they want more government backed funds and incentives. Even so, British tech companies keep outperforming larger economies. The sector grows more than 12% each year, proving the UK remains a heavyweight in global innovation.

Digital Infrastructure and Connectivity

Fast networks power digital life. The UK sped up its broadband build. In January 2025, 86% of homes, about 25.9 million, could order gigabit broadband near 1 Gbps. In 2019 full fibre reached only 12%. The government set an 85% target for the end of 2025 and industry cleared it early. The long term plan covers almost every home by 2030. Open reach, Virgin Media O2 and others invested billions in new fibre across towns and cities. Project Gigabit adds £5 billion to connect remote villages and islands. The number of premises stuck below 10 Mbps dropped to roughly 48,000.

Mobile coverage keeps pace. Almost every premise gets outdoor 4G at 99% and 4G spans about 96% of land. Early in 2025, 5G reached roughly 62% of land, and in busy areas at least one provider covered more than 80% of locations. The Shared Rural Network, run by operators and government, pushes high speed mobile deeper into the countryside. Major cities stream high definition video over 5G. Rural areas gain fresh towers each year. The gap narrows.

The UK also looks ahead. Engineers test satellite broadband and begin research into 6G to meet rising demand. Telecom firms and regulators strengthen network security and backup systems because steady connectivity underpins both business and public safety.

Government Policies and Strategic Investments

Technology sits at the centre of the UK’s plans for growth. In 2023 the government formed the Department for Science, Innovation and Technology, known as DSIT, and released a ten point Science and Technology Framework. The goals are clear: raise research funding, attract talent from around the world, improve digital networks, modernise regulations, and bring new ideas into public services. To back these promises, ministers set aside about £86 billion for work in artificial intelligence, semiconductors, and clean energy through 2025.

Funding comes from several sources. Grants from UK Research and Innovation and Innovate UK connect universities with businesses. The British Business Bank channels venture capital to founders, and revised research and development tax relief lowers costs for any firm building new technology. A skilled workforce and strong intellectual property laws prevent global companies from entering the market and opening AI labs across the country. Even during the funding slowdown in 2023 and 2024, UK startups were leading Europe in fundraising, securing roughly £5 billion, in the first half of 2025.

Policy keeps pace with progress. The Online Safety Bill sets clear standards for digital platforms. New data protection rules protect privacy while allowing room for invention. A 2023 white paper on AI regulation follows the same balanced approach, welcoming breakthroughs while addressing risks such as bias or misuse. Government test beds give teams safe spaces to trial driverless cars, delivery drones, and other emerging tools.

Steady broadband upgrades and ongoing research grants complete the picture. In the UK, technology is not just another industry. It powers prosperity, supports security, and boosts national influence.

IT in Daily Life, Business, and Public Services

Life in the United Kingdom is now firmly digital. Almost every household has an internet link, compared with roughly three quarters ten years ago, and that connectivity shapes daily habits. Groceries, bill payments and entertainment often happen with a tap on a screen, and shops that once relied on the high street now engage most customers through websites or phone apps. Adults spend several hours online each day, much of it on mobile devices. Social networks keep families and communities in touch, while smart thermostats and home cameras quietly manage routines in the background, raising useful conveniences and new questions about privacy.

Workplaces have evolved in step. Many employees gained experience with remote or hybrid schedules during the pandemic and still rely on cloud tools for meetings and shared documents. Even hands on roles depend on digital systems, whether doctors updating electronic records or engineers using computer design software. Small firms benefit from ready-made online services that let a village shop sell nationwide, yet the gains come with fresh risks. Cyber criminals continue to target companies and public bodies, prompting bigger security budgets and wider support from the National Cyber Security Centre.

Public services mirror this shift. Millions of people now use the NHS App to book appointments, reorder prescriptions and view health records, a change that has cut missed visits and freed staff time. The GOV.UK portal lets citizens submit tax returns, renew passports and apply for licences without paper forms or long queues. Schools have kept many of the online resources adopted during lockdowns, blending digital content with classroom teaching, and councils lend e-books and handle local permits on the web. These advances make life easier for most residents, though they also highlight a digital divide. Ensuring that every person has access to affordable connections and the skills to use them remains essential as society moves ever further online.

Skills, Training and Digital Inclusion

The UK aims to give everyone solid digital skills. Today, pupils start learning basic coding and online safety in primary school. Colleges and universities now run dozens of courses in artificial intelligence, cybersecurity, and data analytics because employers need those skills. Adults find many routes back into training, from coding bootcamps to short, employer sponsored apprenticeships. To guide teaching, the government introduced an Essential Digital Skills Framework that lists everyday tasks such as managing an online bank account and spotting scams.

Yet gaps remain. Roughly 1.6 million people never log on, and about a quarter of the population struggle with tasks like emailing or filling out web forms. These citizens can miss the best prices, face fewer job options, and feel cut off as more services shift online. To fix this, ministers launched the Digital Inclusion Action Plan in 2025. It funds low cost t internet packages, hands out refurbished laptops, and backs hands on classes run by a new Digital Inclusion and Skills unit inside DSIT. A fresh innovation fund supports local projects that focus on older adults, rural households, and people with disabilities. Telecom and tech firms support the push by offering discounted broadband and donating equipment to households on benefits.

Progress shows. Households without internet have fallen to 7%, down from nearly one quarter in 2011. Thousands of digital champions in libraries, job centres, and community groups teach face to face lessons. Life long learning schemes help mid career workers adopt new tools, including generative AI now common in offices. By combining investment, training, and industry support, the UK works toward a society where everyone can enjoy the convenience, savings, and job prospects technology brings.

Conclusion

By 2025, Information Technology in the United Kingdom is a broad and dynamic force that touches every aspect of life; the economy, public services, communities, and homes. The country has positioned itself as Europe’s foremost tech hub, with a thriving industry and ambitious plans to stay at the cutting edge of innovation. From a workforce perspective, the tech sector provides hundreds of thousands of high-skill jobs and continues to grow, although nurturing the necessary talent remains a challenge. The UK’s digital infrastructure has seen vast improvements, connecting the great majority of the population to fast internet and laying the groundwork for future connectivity advances. Government strategy plays a key role, with significant investments and policies aimed at securing Britain’s status as a global leader in technology, while also using tech to drive productivity and improve public services.

Crucially, there is a strong recognition that the benefits of IT must be widely shared. Efforts in digital inclusion and education reflect a commitment to ensure that no region or demographic group is left behind as the nation moves further into the digital age. The UK’s experience shows both the opportunities and the ongoing responsibilities of an IT-centric society: innovation must be balanced with inclusion, rapid progress with resilience and ethics. As the UK continues to adapt to new technologies, be it artificial intelligence reshaping industries or next-generation networks shrinking distances, the focus remains on harnessing IT to build a stronger economy and a fairer, more connected society for all.