The investment will be provided through the Employer Investment Fund administered by the UK Commission for Employment and Skills.
The money will support 18 Sector Skills Councils (SSCs) with a range of employer designed and led skills solutions.
Charlie Mayfield, chairman of the UK Commission for Employment and Skills, said: "Over the past two decades governments of all hues have driven reform and expansion of the country's vocational skills system, with some notable successes. But the fact is we've become less competitive globally on skills, and for many employers the 'system' is just too complex.
"The answer lies in moving away from grant funding to investing in employer led skills solutions, building the capacity and capability for employers to take ownership of the skills agenda. By working within their supply chains, through business clusters, and with unions, colleges and training providers they can develop the skills they need. That is what this funding is intended to promote."
The fund will be divided between a range of sectors including manufacturing which will receive almost £15m; the service sector which will receive almost £16m and the creative and digital sector which will receive over £13m. The funding will start in April 2012 and last until March 2014.