Figures from the Office of National Statistics show an increase in teenage pregnancy rates from 40.9 conceptions per 1,000 15 to 17 year olds in 2006 to 41.9 per 1,000 for 2007.
The extra funds will be used to support the teenage pregnancy strategy, with £7 million assigned to raising the awareness of long acting reversible contraceptives (LARCs).
£10 million will be invested in local health services to ensure contraception is available in the right places.
The remaining funds will be spent on further education colleges and the development of a healthy college programme.
Health minister Dawn Primarolo said: ‘Young people need good advice and easy access to contraception when they become sexually active.’
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