Older people who are stuck in hospital are to receive hundreds of pounds to help them to return home.

Pensioners will be able to use the money to buy equipment or care as part of efforts to free up thousands of NHS hospital beds.

Health Secretary Alan Milburn told MPs the extra �1bn promised for social services in April's Budget will also be used to fund more nursing home places.

Elderly care pledges

Faster assessment of the needs of older people Direct payments for elderly patients to allow them to live at home Relaxation of nursing home regulations Charges for equipment like ramps and rails to be scrapped More care home places

He added that the government was scrapping plans to force homes to meet strict standards on accomodation.

Home owners had claimed that the standards combined with low fees from councils were driving them out of business.

Faster care

Mr Milburn also promised faster assessment of the needs of older patients and said charges for equipment like ramps and rails would be scrapped next year.

Speaking in the Commons, Mr Milburn said: "Older people are the generation that created our great health and social services. They deserve to get the most from them."

He said proposals to offer direct payments to older people would empower them and give them the choice of buying care "that better suits their needs".

It is understood that the payments will be one-off and will vary according to the age and needs of patients.

However, older people will be able to use the money to pay for extra nursing care, equipment or home improvements such as stair lifts, ramps or rails.

Mr Milburn also pledged to give local councils extra money to ensure that they can increase the fees they pay to nursing homes and fund additional places.

Mr Milburn said the changes would offer choice to elderly people

Some home owners have suggested that low fees are making it uneconomical for them to continue operating. Hundreds of homes have closed in recent years.

"We will now plan to increase the number of care home places," Mr Milburn said.

"The resources given to councils will also increase next April to enable them to pay higher fees still if that is what is needed to stabilise the market in their area."

The health secretary announced a U-turn on plans to require nursing and care homes to meet strict targets.

These included specifications on the number of bathrooms and lifts and other facilities.

Rules U-turn

However, Mr Milburn said that rules on these would now be relaxed and no home would be forced to close if it did not meet the criteria.

Instead, homes will be asked to publish a list of their facilities and older people and their families will be able to use that information to decide where they wish to live.

The government is also making �70m available over the next four years to fund training for nursing home staff.

In addition, the money available for carers will increase over the coming years.

The statement is a wish-list that rings hollow when it comes to the government's record

Dr Liam Fox, Shadow health secretary

However, Mr Milburn's speech was criticised by opposition parties.

Shadow Health Secretary Dr Liam Fox said: "The statement is a wish-list that rings hollow when it comes to the government's record."

He said the government's "failure to listen" had led to the loss of 60,000 care home places in the past five years.

"It is a failing entirely of the government's own making," he said.

Broad support

The UK charity Help the Aged welcomed the proposals. Gail Elkington, its care policy officer, said: "At last the government is recognising the key role of social care in supporting older people�s independence."

Michelle Mitchell, of Age Concern, welcomed the decision to make direct payments to older patients.

But she added: "These payments must not replace residential support or hospital care where people need it.

"Implemented well, they have the potential to promote independence, giving individuals more control over the care and support they receive."

The Independent Healthcare Association, which represents private care homes, welcomed the speech.

In a statement it said: "The IHA now believes it is time that local authorities put their money where Mr Milburn's mouth is by paying appropriate fees and attempting to address the current �1.5 billion shortfall on fees faced by care providers in the independent sector."