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A radical £300 million ‘cash for change’ programme designed to end ‘bed-blocking’ by 2004 has been launched today by local government secretary Stephen Byers and health secretary Alan Milburn, writes Clare Jerrom.

The programme will allow over 2,000 older people to leave hospital rather than having to wait after their treatment is finished. Up to 1,000 NHS beds will be freed this year alone.

The investment is linked to a reform of the way NHS and social services work together, underpinned by a new agreement ‘Building Capacity and Partnership in Care’ published today. The agreement has been drawn up with the voluntary and private home care sectors, health and housing organisations.

It will free beds in hospitals, reduce waiting times for treatment and ensure particularly older people are cared for in the most appropriate place.

Milburn said: “This cash for change programme, based around our new agreement, means the NHS, private and voluntary care providers and local councils will work better together to reduce bed-blocking.”

“Waiting times for people who need to leave hospital and waiting times for patients who need to go in to hospital will reduce as this reform programme takes hold,” he added.

£100 million will be available for the remainder of this year to April 2002, with £200 million available for 2002/3. The money will be allocated to local authorities – with the 50 councils with the most severe problems receiving extra funding.