£100m to retrain axed workers

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In a further indication that ministers are preparing for a recession, the Government said that the cash would be carefully targeted at - among others - workers in sectors "experiencing significant job losses".

The additional funding was announced in a joint statement by Work and Pensions Secretary James Purnell and Skills Secretary John Denham.

Mr Purnell said: "At a time like this we need to do everything in our power to help people who lose their job.

"These are uncertain times and the clear message I want to send to people is that there is help out there if the worst happens and they find themselves unemployed."

Mr Denham added: "People who lose their jobs need support to get back into work, including the chance to improve their skills where necessary."

The money will come from the European Social Fund and funding from Department for Innovation, Universities, and Skills.