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27 August 2020, 08:12 | Updated: 27 August 2020, 08:20
Those testing positive for Covid-19 could be offered £13-a-day to make sure they self isolate.
Those who test positive for coronavirus or are told to self-isolate could be given £182 to encourage them to stay at home.
People who are eligible will be given £130 by the government for their 10-day quarantine, while members of their household, who have to do the same for 14 days, will be entitled to £182.
Non-household contacts advised to self-isolate through NHS Test and Trace will also be entitled to a payment of up to £182.
The £13 a day will be paid to those in areas with high infection rates who receive Universal Credit or Working Tax Credit.
It will be given to workers on lower salaries who cannot work from home including cleaners, factory workers, the self-employed, taxi and delivery drivers.
The payments will start from Tuesday and trialled in parts of the North West, including Blackburn with Darwen, Pendle and Oldham.
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Payments will be given within 48 hours of the person providing evidence to NHS Test and Trace, and will not reduce any other benefits they might already receive.
According to The Department for Health and Social Care, checks will be in place to make sure they are self-isolating.
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Health Secretary Matt Hancock said: "The British public have already sacrificed a great deal to help slow the spread of the virus.
"Self-isolating if you have tested positive for Covid-19, or have come into contact with someone who has, remains vital to keeping on top of local outbreaks.
“This new payment scheme will help people on low incomes and who are unable to work from home to continue playing their part."
But Labour's shadow chancellor Anneliese Dodds said the payment scheme should be available to more people.
She said: "It's concerning that this will only apply to a limited number of areas with high rates of Covid-19.
“The instruction to self-isolate applies to everyone in the country, so everyone should get the support they need to self-isolate."
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