The government have set out further details of the plan to make swimming free for all by 2012.

Arrangements for the £140m scheme have been developed across government with the help of organisations including Sport England and the Amateur Swimming Association.

In a written statement, culture secretary Andy Burnham outlined details of four pots from which local authorities will be invited to apply to fund the scrapping of pool admission fees. Starting in 2009, the funding will initially seek to encourage local authorities to make swimming free for over-60s and under-16s with the aim of extending the scheme further within the next four years.

"We hope this statement will give local authorities the information they need to start planning for their budget setting cycle," said Burnham. "And to decide the extent to which they wish to exploit the opportunities offered by the scheme to improve the health and well-being of their communities and support delivery of local priorities as set out in their respective local area agreements."

The first pot of funding will provide £15m each year from the government between 2009 and 2011 to make swimming free for over-60s. Local authorities will be given until mid-September to confirm whether they wish to participate in the scheme. A letter from the government to all local authorities will detail the resource funding allocation available, based according to the size of the local over-60 population.

A further £25m has been set aside in the second pot for the provision of free swimming for under-16s. Local authorities who choose to participate in making swimming free for over-60s will also be invited to submit an expression of interest in the under-16s scheme by mid-September. Those authorities expressing an interest in both initiatives will be informed of their prospective allocation by the end of September, with confirmation required by mid-October.

Local authorities which already provide free swimming facilities and qualify for funding will be entitled to fund initiatives to further increase and sustain participation before extending it to wider groups.

Pots three and four will provide funds for the modernisation of pool provision with a total of £35m earmarked by the government. Pot three will offer a one-off capital grant in 2008/09 to local authorities participating in pots one and two. Local authorities will be awarded a share of £10m according to population share.

Pot four will provide £25m capital per year in 2009-10 and 2010-11 to modernise pool provision, and will be administered by Sport England on the government's behalf. A prospectus for bids will be published at the end of July, and those authorities committed to offering free swimming will be invited to submit their costed plans for pot four by mid-October.

The proposals to introduce free swimming for all by 2012 are a part of legacy plans for the London Olympics, which are being funded by a number of government departments including the Department for Culture, Media and Sport, and the Department for Work and Pensions.