The scheme will fund skills and training plans to help victims of downturn job culls find employment.
Secretary of state for work and pensions James Purnell said: "We will not fiddle the figures, throw people on the scrap heap by using incapacity benefit to hide unemployment or abandon people to long periods on benefits without any help."
Commenting on Purnell's announcement, Christine Knott, MD of training provider Beyond The Box, said: "It is gratifying to know James Purnell is keen to offer support once someone has lost their job.
"But I am curious as to the training courses these newly unemployed people will receive. Will they be furnished with new skills to prepare them for alternative work that doesn't exist due to the current climate?"
100 million training fund to reskill redundancy victims
The Government has announced it will invest 100 million into helping people who have been made redundant to return to work.
