Much educational achievement is based on what you do 'extra', 'for pleasure'. How can a government 'encourage' this? If it's for pleasure, it needs to be self-motivated, not imposed by an institution.
Governments could remove tax from ebooks though. And keep libraries open.
Encouraging reading for pleasure: What the research says on reading for pleasure
http://www.education.gov.uk/schools/teachingandlearning/pedagogy/teachingstyles/b00192950/encouraging-reading-for-pleasure/what-the-research-says-on-reading-for-pleasure