The aim is to persuade owners of around 100million analogue radios still in use around Britain to buy the new sets.
The Government has said that by 2013 DAB coverage should reach 90% of the population and all major roads, and 50 per cent of listening should be digital — currently it is only 24%.
The scheme will be led Digital Radio UK, the body managing digital-radio switchover.
The radio initiative mirrors the Government’s car scrappage scheme, which gave drivers a £2,000 subsidy when they traded in their old vehicles for new ones.
This story first appeared on pitch