The Department for Transport scheme aims to provide funding for a series of demonstration projects on personalised travel planning.
The Department is looking to award grants to local authorities, passenger transport executives and their project partners on a match-funding basis of up to £50,000. It is expected that around ten projects will be funded covering urban, sub-urban and rural areas.
These will provide tailored information on alternative forms of transport for people wanting to leave their cars at home or reduce their car travel.
The plans are unique in that they target individuals by providing a personalised plan for their own travel habits.
Suggestions and incentives are offered to make journeys in a more environmentally friendly and sustainable way.
John Spellar, Transport Minister, who launched the project in Nottingham last week, said: 'Very often, people do not know what alternatives to making their journeys by car are available.
'They may not be familiar with the area, or be aware of bus or train services, or local cycle friendly routes.
'They may have stopped using public transport without realising it has got better. Personalised travel planning can help overcome this barrier by providing tailored information on specific journeys.
'We are looking to learn from the demonstration projects – to improve our understanding of the relative effectiveness of the techniques available and identify best practice in their application. This in turn should encourage local authorities and others to use personalised travel planning as part of their strategies to reduce congestion.'