COUNCIL chiefs in York have been handed £149,000 to prepare for controversial "bed blocking" fines.

The city council's social services team can spend the cash on initiatives to stop elderly people staying in hospital "unnecessarily" after they are fit to be discharged.

But if they fail they will be hit with fines of up to £100 per night by the Government.

North Yorkshire has been given a grant of £503,000 - but has previously estimated the total fines could reach £750,000 per year.

Announcing the cash, Health Minister Jacqui Smith said she did not want the new system to be about "penalising" councils. She said the money - which has been switched from the NHS budget - would give councils time to plan for the introduction of the charges in January next year.

Ms Smith said: "It is a whole-system responsibility, which is why we are transferring money from health to social services departments.

"Local authorities can get on with investing these extra resources in expanding older people's services. We have the right incentives and the right investment to ensure better care for older people."

The Government argues social services departments which do their jobs properly should have nothing to fear. At present, the NHS is left to pick up the bill for patients who are fit to leave hospital care but have nowhere else to go.

"Bed blocking" is also forcing up waiting lists, as operations have to be cancelled when no beds are available.

But the fines system has provoked a storm of protest from councils, opposition MPs, Help the Aged and peers. They argue it will undermine the close working relationship between hospitals and social services departments, which have been hit by dozens of care home closures.

The lack of care homes beds is the main cause of "bed blocking", as people who no longer need hospital care, but are unfit to live alone have nowhere to go.

Ministers say the cash can be spent on providing extra beds, but they also want councils to focus on providing more care for people in their own home.

City of York Council said the grant was welcome and that discussions had already taken place with York NHS Trust and Selby and York Primary Care Trust to ensure the investment was used to "increase capacity for services".

Updated: 10:40 Friday, May 23, 2003