The new legislative programme includes measures to tackle the problem of "bed blocking" in NHS hospitals.

Ministers believe the problem is a major obstacle to delivering improvement in waiting times in many hospitals.

Controversial proposals could see local councils "fined" if they fail to provide sufficient long term care places for elderly patients, preventing them from being moved out from hospital wards after their treatment.

Government plans, modelled on the systems in Sweden and other European countries, will compel local authorities to invest their growing budgets in extra services.

If bed blocking goes up, councils will incur the cost of keeping older people in hospital unnecessarily.

To balance the plan, there will be similar incentives to prevent hospitals from seeking to discharge patients prematurely.

The government says it is committed to ensuring that older people would be provided with "seamless care, free from institutional barriers".

Critics say the plans could leave local councils and hospitals in a series of disputes over who is responsible when things go wrong.

But ministers insist the new laws will encourage a partnership approach ensuring all individuals receive "the care they need, when and where they need it".

The plan also forms a key part of the government's drive to slash waiting lists.

By tackling the problems of "bed blocking", ministers aim to provide more capacity for other patients.

The government also argues that there is also a social benefit, promoting the independence of older people by allowing them to leave hospital for "a more homely environment" as quickly as possible.