Chancellor Gordon Brown has announced more money for apprenticeships, training wages for teenagers and grants to help train staff in basic skills.
In what is expected to be his last budget speech, the Chancellor said that some of the 5% increase in the education budget pledged for the next three years, would go into doubling the number of apprentices to 500,000.
Brown also said the "education leaving age" would rise to 18, and set aside new funds for a training wage for 50,000 16-to-17 year olds in England who sign activity and learning agreements.
Meanwhile, he said small companies who take on an employee needing to acquire the most basic of skills, will be able to clain £2,000 training help per employee and in some cases £3,000.