This sum is less than a third of the government's advertising budget for the first three months of this year

Dr Liam Fox Shadow health secretary

Deaf charities have welcomed the move but warn that access to the modern hearing aids should not depend on where people live.

They also said that despite the investment far too many of the UK's two million hearing aids users will still have to use the 1970s analogue version.

Announcing the cash, Ms Smith said: "It is vital that we provide modern, good quality services for people who are deaf and hard of hearing.

"The modernisation of hearing aids project is a key part of our determination to bring hearing aid services into the 21st century.

"For the first time, leading edge digital hearing aids are available on the NHS and they are being provided as part of a modernised service designed around the needs of people with hearing impairment.

'Inequality'

"Our new investment of �20m for next year is more than three times the funding currently available to modernise services this year.

"It confirms our commitment to provide leading edge digital technology to hearing impaired people."

The new hospitals and healthcare trusts are in addition to the 20 sites already involved in the project.

A further 15 sites will have the necessary training and equipment in place to fit the digital hearing aids from 2003/04.

'Half-hearted gesture'

The chief executive of the Royal National Institute for Deaf People (RNID), James Strachan, said: "Today's announcement is a great Christmas present for deaf and hard of hearing people.

"RNID jointly managed the first wave of NHS audiology modernisation and will now be working hard with the government to ensure that hearing aids are made available to all as soon as possible.

"However, gaining access to digital hearing aids should not depend on whether you can afford to pay or on where you live. We want to see an end to this inequality."

One third of the old analogue hearing aids were rarely or never used because of the poor quality of aids and advice, the charity said.

Jacqui Smith: Vital investment

The advanced digital hearing aids perform better because they can be adjusted to suit the specific needs of each user.

This means better hearing quality with background noise reduced and wearers can hear speech more clearly in a wider range of situations.

But shadow health secretary Dr Liam Fox said the money was "far too little, far too late".

"This sum is less than a third of the government's advertising budget for the first three months of this year," he said.

"It is a pathetic response in the face of rising public pressure and lengthening waits for deaf patients."

Liberal Democrat health spokesman Dr Evan Harris called the announcement a "half-hearted gesture".

He said: "While any investment is welcome, these new funds will only provide digital hearing aids for a quarter of the country and only to those who are particularly hard of hearing."