Measures including a £250 million package for pop-up bike lanes, wider pavements and cycle and bus-only streets aim to provide for double the number of people expected to be walking and pedalling to work by 2025.
Transport Secretary, Mr Shapps said: "Whilst it's crucial that we stay at home, when the country does get back to work we need to ask those people to carry on cycling or walking and for them to be joined by many others as well."
Just a 5% increase in cycling would save 8 million car journeys, 9 million rail journeys and 13 million bus journeys.
He added: "This £2 billion package represents the biggest investment in cycling and walking by any British government."
Even with public transport recovering to full service, once you take into account the two metre social distancing rule there will only be effective capacity for one in 10 passengers in many parts of our network.
Transport for London confirmed that they "will only be able to carry around 13-15 per cent of the normal number of passengers on the Tube and bus networks, even when 100 per cent of services are operating once again over time."
Head of Roads Policy at RAC, Nicholas Lyes said: "We welcome the Government's approach to increasing safe cycling and active travel for people to get about, particularly as concerns about the safety of using public transport are likely to persist for some time."
A cycling plan to be unveiled in June includes a new voucher scheme for bike repairs and maintenance and extra funding for the NHS, with GPs being asked to prescribe cycling to get the nation fitter.
Ministers will work closer with employers to increase uptake in the cycle to work scheme, which already allows employees to save 25 to 39% of the cost of a new bike.
The car will continue to play a vital role, and £10 million will be invested in electric charging points and accelerating pot-hole repairs.