The new agreement for the next 2025-26 financial year will see the total value of the contract grow by 7.2%.
The total figure includes almost £800m to cover rising costs, such as staff wages, repairs and maintenance of buildings and more patients.
Other measures include a greater flexibility for surgeries when it comes to employing different healthcare staff.
GPs will get paid more to carry out routine childhood vaccinations.
Through cutting what the government describes as “box-ticking targets”, ministers say GPs will be freed up to take the first steps towards ending the “8am scramble” for an appointment.
Health and Social Care Secretary Wes Streeting says that these are the first steps in fixing what he describes as “a broken NHS”.
“Over the past decade, funding for GPs has been cut relative to the rest of the NHS, while the number of targets for GPs has soared,” he said.
“That’s why patients are struggling to get an appointment.
“This government is cutting the red tape that ties up GPs’ time and backing them with an extra £889m next year.
“In return, more patients will be able to request appointments online and see their regular doctor for each appointment.”
Dr Katie Bramall-Stainer, who chairs the BMA GPs’ committee, says this contract is a good start, but more work is needed.
“We have shown that we want to work in good faith with this government and build on this new beginning – what we now need is certainty about our collective future.
“We know the Treasury will be announcing its funding plans for this Parliament this spring, and we need to see a new substantive GP practice contract for England in the upcoming comprehensive spending review.”
Dr Bramall-Stainer told BBC Breakfast general practice had been pushed to “desperation point” over the last 15 years – with “thousands” of GPs leaving.
She explained the “first signs of green shoots” patients might see following the new agreed measures would include being able to get to know their doctor and local staff and surgeries advertising for more staff.
She indicated patients would “potentially” begin to notice a difference in six to 12 months but insisted that, although a step in the right direction, these new measures are “nowhere near a solution”.
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