Education Secretary David Blunkett announced the Employee Education Development Fund would be available from April.

Both employers and trade unions can apply to it for cash to promote innovation in workplace training.

TUC general secretary John Monks said; “It is a clear recognition of the innovative ways in which unions are working with employers to create more opportunities for workplace learning. Education and training at work are essential if we are to create a thriving, competitive economy and give employees the skills and qualifications to survive in today’s world of work”.

Mr Blunkett said: “Trade unions have long made a valuable contribution to workplace education. This new fund will enable unions to bid for financial support ... I want it to stimulate a new partnership of employers, the workforce and their unions.”