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Leading mental health charities have criticised the star ratings for mental heath services as painting "too positive" a picture.

Ratings of two or three stars, the top two grades, were awarded to 71 of the 86 mental health trusts (see left). This compares with 58 of England's 150 social services departments.

The government hailed the results as proof that services were improving, adding that the three-star trusts would each receive up to £1m and would have greater financial freedom.

But Cliff Prior, chief executive of Rethink, formerly the National Schizophrenia Fellowship, said: "People who use mental health services will be surprised to see such positive results - it simply is not the experience they have."

The ratings were based on 16 key targets and focus areas. Key targets were judged as achieved, underachieved or significantly underachieved. Criteria were ranked from five (significantly above average) to one (significantly below average).

A number of trusts awarded two stars - indicating they had performed well overall - had significantly underachieved on one of the six "key targets" or had been significantly below average on at least one of the 10 focus criteria. Some trusts received two stars despite information not being available for more than a third of the 16 criteria.

Marjorie Wallace, chief executive of mental health charity Sane, said that its recent survey of psychiatrists and the calls to its helpline painted a "far gloomier picture" of mental health services. "[The ratings] highlight the absurdity of performance measures for people with enduring mental illness who need time, space and activity rather than a quick turnover," she said.

Mental health charities Mind and the Mental Health Foundation welcomed the ratings but said they wanted to see more indicators tie in with the National Service Framework and focus on users' experiences, such as 24-hour access to care.

Health secretary Alan Milburn said: "There will be quibbles about the way trusts have been rated. While the system is not perfect, it is improving." He also announced the criteria that will allow the best performing hospitals to apply for foundation status, freeing themselves from Whitehall control. Similar freedoms are eventually expected for the best local government services.

The criteria for foundation status include evidence of high standards of clinical care, high quality management and joint-working arrangements with other organisations.

Mental health star ratings

Three stars

- Barnsley Community and Priority Services Trust

- Dorset Health Care Trust

- Guild Community Healthcare Trust, Preston

- South Birmingham Mental Health Trust

Two stars

- The remaining 67 trusts

One star

- Barnet, Enfield and Haringey Mental Health Trust

- Brent, Kensington, Chelsea and Westminster Mental Health Trust

- Camden and Islington Mental Health Trust

- East London and The City Mental Health Trust

- Leeds Community and Mental Health Services Teaching Trust

- Leicestershire and Rutland Healthcare Trust

- Local Heath Partnerships Trust, Ipswich

- Norfolk Mental Health Care Trust

- North Essex Mental Health Partnership Trust

- North West Anglia Health Care Trust

- Shropshire's Community and Mental Health Services Trust

- South Essex Mental Health and Community Care Trust

- West Hampshire Trust

Zero stars

- Bedfordshire and Luton Community Trust

- South Warwickshire Combined Care Trust