Housing services could be run by the NHS under new powers to be allocated to care trusts, it emerged last week.

In an announcement following the Queen's Speech in which it detailed the contents of the forthcoming NHS and Social Care Bill, the Department of Health revealed that care trusts would be 'one-stop shops, including social care and other local authority services, such as housing'. A DoH spokesperson confirmed that, in addition to social services functions, trusts 'could also have delegated to them by local authorities responsibility for housing matters'.

This might involve arranging rehousing for elderly people after discharge from hospital or taking responsibility for housing for people with a mental illness.

Local Government Association head of social affairs John Ransford said he was not opposed to care trusts taking on housing in principle, provided that delegation was agreed locally by councils. But he said if care trusts had 'the same governance arrangements as primary care groups and trusts, there would be an awful lot of scepticism' about delegating housing responsibilities.

The NHS Confederation was more upbeat. Policy manager Janice Miles said: 'It's an idea that's certainly be worth looking into.'

However, she questioned whether PCTs looking to move to care trust status would have 'the capacity to pick up housing and social care at once'.

And NHS Alliance chief executive Michael Sobanja said: 'I can understand working with social services, but I personally think housing is going a bit far. If one was to include housing, the next bit is what about education, or criminal justice? The NHS can't manage everything.'

Tendring PCT chief executive Paul Unsworth said: 'My eyebrows raised a bit. When I meet with housing colleagues in future, I will talk to them with more interest. We're receptive to the idea of being a care trust, but we would need more time before we consider housing.'

A senior housing officer in the London borough of Southwark said health workers would ask why outreach housing workers could not be sent into hospitals to see people and register housing needs.

Those with mental health problems were particularly vulnerable, often 'dumped' back into the poor accommodation that was at the root of their original problem, he said. But he said partnership between different organisations was more important than care trusts that 'would create another level of bureaucracy'.

North Southwark PCG co-chair Dr Jane Fryer agreed. 'There needs to be a significant improvement in how housing and health communicate. But I'm not sure if a care trust is the way to do that.'