The proposals include an adult careers service for England. They follow the Leitch report on skills.
Lord Leitch said the UK lagged behind in adult literacy and numeracy.
Speaking in the Commons, John Denham said: "We will bring about a skills revolution and close the gap between where we are now and where we need to be in 2020.
"Our ambition is to ensure that this country becomes a world leader in skills by 2020."
Lord Leitch's key recommendation that the age for compulsory education should rise from 16 to 18 has already been taken up by Prime Minister Gordon Brown.
His report, published in December, said five million adults lacked "functional literacy" while more than 17 million had problems with numbers.
Lord Leitch had urged ministers to commit to a "compelling new vision" and to become a world leader in skills by 2020.
The government accepted a target he had set for 95% of adults to have basic skills in literacy and numeracy, with the aim of 1.1 million more people achieving this over the next three years.
Mr Denham said the government wanted a "skills revolution", in which vocational training was "employer-led".
"We must ensure the rising generation starts working life with higher qualifications and higher skills," he said.
