More must be done to reduce the large number of elderly patients awaiting discharge from hospital, the government's spending watchdog has said.

The National Audit Office welcomed an increase in the NHS patient discharge rate, but highlighted that problems are far from solved.

Although increased government funding had improved the efficiency of discharge procedures, the report found that 34 per cent of elderly patients remained in hospital unnecessarily for over a month.

Government targets to reduce significant delays in discharge by 2004 were introduced in response to figures suggesting that nearly 6000 beds remained occupied by elderly patients declared fit enough to leave.

According to NAO statistics, this figure has been significantly reduced in the past year, dropping by 12 per cent.

The head of the NAO, Sir John Bourn, stressed that barriers to a solution still remained in place.

He warned that a lack of appropriate post-hospital care - due to a lack of flexibility in the nature of care available to those discharged - remained a problem.

And he highlighted a reduction in the number of places provided by private sector residential care.

Bourn said there was a "need for joined-up government with the NHS, local authorities and private and voluntary sector care providers working together".

A further significant failure was insufficient amount of time given to planning "discharge pathways", as well as waits brought about by a shortage of skilled therapists.