MINISTERS will today unveil a multi-million pound fund to retrain workers who lose their jobs in the recession.

Cornwall in particular has been singled out for extra help in recognition of it being especially vulnerable to the economic slowdown.

It will include a major drive to expand the number of "green collar" jobs in the region in a bid to tap into the potential of the renewable energy and eco-lifestyle sectors.

Employment minister Tony McNulty told the WMN he hoped the £27 million in European funding would "break down barriers" that stop people in Cornwall fulfilling their potential.

The move follows Cabinet minister Harriet Harman's admission at the weekend that Cornwall is "not as wealthy an area as it should be" and therefore less well prepared to weather the economic storm than "better-off areas".

According to official figures some 16,650 people were unemployed in Devon and Cornwall in September.

That marked a 22 per cent rise since June and another increase is expected when October's data is released in the next fortnight.

With fears growing about the scale of the recession, the Department for Work and Pensions will today announce the new European Social Fund money will be ploughed into projects to help people develop their skills and stay in work or find a new job if they are made redundant.

Charities and private firms will be able to bid for the money – but Cornwall, as a "special case", is guaranteed to get up to three new schemes.

The county's unique status means applicants must provide just a quarter of the funding themselves, with the rest coming from European coffers. All other schemes in the rest of the country must raise at least half of the funds.

Each project will work with at least one partner from another EU member state.

Mr McNulty said last night: "At a time when we are facing global economic challenges it is essential that we make sure everyone has the right skills for the vacancies which exist, and that employers are looking to fill.

"This initiative will help break down barriers that prevent people in Cornwall achieving their potential, and tackle some of the biggest challenges facing our society.

"It will boost the support we offer to unemployed and disadvantaged people to improve their skills and return to work."

The rest of the South West will benefit with a further three projects planned across the region and helping older people back into work identified as the priority.

The money is on top of some £100 million announced last month by Work and Pensions Secretary James Purnell and Skills Secretary John Denham.

It is understood the new money will particularly target projects which will help people who may find it harder to get back into work, for example disabled people, older workers or lone parents.

Employers in the Westcountry will be encouraged to make clear which skills are missing from applicants to ensure any gaps which do exist can be quickly filled.

Training will also be offered for "green jobs" and helping people to set up and manage not-for-profit enterprises.