The government will also give schools more freedom over planning sport in schools and look to focus on encouraging competitive sport through an "Olympic-style school sport competition". Details surrounding this have yet to be revealed.
But Dr David Haslam, chair of the National Obesity Forum, fears that "if money is no longer ringfenced I fear that commitment from schools may not be there".
He added: "We know the health benefits of physical activity and school sports is an important way of achieving that. For some children it may be the only physical activity they take part in."
He said that PE need not be expensive, such as "building a new gym", but there must be a level of commitment by schools to promote sport.
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