Thousands of people will be given devices to measure their step count and unlock rewards such as cinema tickets, shopping discounts and theme park tickets.
The Health Incentives Scheme could be rolled out nationally, following a six-month pilot scheme that will give people extra points for taking more exercise and eating more healthily .
Those taking part in the £3 million trial will be given access to a new app, which tracks their lifestyle and advises changes. In return, those taking part will be given free rewards, which could include gym passes, clothes or food vouchers and discounts for shops, cinema or theme park tickets.
The ideas are being spearheaded by Sir Keith Mills, the entrepreneur behind Air Miles and the Nectar loyalty scheme.
The pilot, starting in January, will see users wear wrist-worn devices that can generate personalised health recommendations, such as increasing the user’s step count, eating more fruit and vegetables and decreasing portion size .
The health tech company HeadUp Systems has been awarded the new contract, and will work with other companies to provide rewards such as vouchers, merchandise, discounts and gift cards.
Sajid Javid, the Health and Social Care Secretary, said: "I want to ensure we're doing as much as we can to tackle health disparities across the country, and this new pilot will pave the way for developing innovative ways to improve the lives of individuals, and also help to reduce strain on the NHS.
"This pilot is an excellent opportunity to find how best to inspire people to make small changes to their daily lives that will have a lasting positive impact on their health."
The area chosen for the pilot has yet to be announced.
The idea is modelled on schemes tried abroad, including Singapore's National Steps Challenge.
Sir Keith said: "This scheme is a fantastic opportunity to explore how government, business and the third sector can work together to deliver a new and engaging way of supporting the public to make healthier choices.
"Through the pilot we will have exciting and innovative partners on board who will help motivate people to want to earn incentives, but also should help them overcome barriers to making healthy decisions in future. I'm looking forward to seeing how this scheme develops."
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