The Government has agreed to stump up 1 billion to give patients online access key NHS services by March 2015.
The funding will be used to set up systems by March 2015 so patients can book GP appointments, order repeat prescriptions and access their medical records online.
Some of the money will also be invested in the development of systems that will allow hospitals, GP surgeries and out of hours care providers to share patient data.
Labour's project saw spiralling costs, bungled management and little or no return for patients or staff.
Health secretary Jeremy Hunt explained in a blog post why investment in these areas is needed, claiming lack of available patient information can have fatal consequences.
"It is shocking to hear stories of elderly dementia patients turning up at A&E with no-one able to access their medical history," he wrote.
"Meanwhile terrible mistakes can occur when patients are given drugs they don't need or may be allergic to because their notes have been lost.
"Nurses and patients fill in umpteen forms with the same information because the same hospital may have a dozen or so electronic systems," he added.
However, Hunt was quick to distance this system from the 13 billion NHS computer project the previous Labour Government was responsible for, which was scrapped two years ago.
The earlier project had several aims, including the creation of an electronic patient care record that could be used to share information between healthcare providers.
"Labour's project saw spiralling costs, bungled management and little or no return for patients or staff," he continued.
"Overdue and over budget, it was a gargantuan, one-size-fits-all solution that proved as unworkable as it was costly."
This time around, he added, the focus will be on decentralised procurement processes, that will see local healthcare providers bidding for support.
"This money will be well spent, and the better service it will fund will be more cost effective," he stated.
"We only need to look at the outstanding service offered by the first movers within the NHS to see the difference this makes for patients."
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