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The business secretary announced plans to create 35,000 new apprenticeship places.
Lord Mandelson told peers that his skills strategy would give people and businesses the skills they need to help drive economic growth.
"My Lords, I start from the position that skills in our society must always be an individual's ladder up," he told the House of Lords this afternoon.
"That's why the skills system also needs to mesh with our university system.
"We need schools and colleges to make a strong vocational offer, which leads to a clear vocational route from apprenticeship to technician to foundation degree and beyond."
The government plans to create a "modern class of technicians, through a dramatic expansion of advanced apprenticeships, creating 35,000 new places over the next two years".
Every adult will be given a personal skills account so they can "shop around" for training with new information on how well different courses and colleges can meet their needs.
There will be a reduction the number of public bodies by more than 30.
Mandelson also plans to focus funding on the areas of the economy "that can do most to drive growth and jobs".
There will be £100m spent on supporting 160,000 training places in areas such as life sciences, digital media and technology, advanced manufacturing, engineering, construction and low carbon energy.
There will also be 1,000 new scholarships worth £1,000 each, to encourage the best apprentices to progress into higher education.
Dods Parliamentary Communications Ltd