The action plan, unveiled today by the Department for Children, Schools and Families, aims to deliver on recommendations delivered in an independent report commissioned by the government called "safer children in a digital world" -- which was published earlier this year.
The report looked at the risks to children from exposure to potentially harmful or inappropriate material on the internet and in video games.
Margaret Hodge, minister for culture, media and sport, said: "By taking forward Dr Byron's recommendations we will help children to safely navigate the internet and allow parents to make informed decisions about what is appropriate for their child."
The plan also includes the establishment of a UK council for child internet safety, where government departments, stakeholders and industry can join together.
Although the council will govern digital regulation issues, the government said it will look at having self regulatory standards for industries to sign up to.
The government said "e-safety" will become one of the cornerstones of a £9m child safety awareness campaign kicking off later this summer.
The government said in a statement: "This will not be about telling people what to do but empowering them to keep themselves and their families safe."
The government is also set to "address the confusion" around video games ratings and intends to launch a consultation to "consider all necessary evidence around current and future video games consultation".
The campaign comes after a spate of online bullying and children being targeted by paedophiles when using social media sites such as Bebo and MySpace.