The proposed target is to get one in five young people in apprenticeships within ten years.
Government funding is given to companies employing apprentices to the tune of £1bn and this extra money is in addition to this with a target of training 4000,000 apprentices a year. The intention is to double that figure by 2020.
Skills Secretary John Denham says, "Now more than ever it is important that we give people the real help they need to get and keep jobs.
"This is an important initiative and is a further signal of our determination to give people the chance to get the practical training they need to get on and to help ensure the country has the skilled workers it needs to benefit from the upturn."
The Government is anxious that companies do not pull their part of the funding during the economic downturn. Ministers see the upgrading of skills as vital if the country is to stay competitive when we do come out of the downturn, plus the extra initiative will help boost employment.
McDonald's is one company aiming to become the UK's largest apprenticeship provider, offering workers the chance to qualify in "multi-skilled hospitality".
The extra Government funding means it could offer the scheme to one in eight of its staff this year and up to 10,000 every year from 2010.
The McDonald's apprenticeship is equivalent to five GCSEs at A* to C.
