The go-ahead has been given for the merger of North Essex and South Essex health authorities to create a new Essex Health Authority.

The new organisation is one of 28 new health authorities across England and Wales announced by Health Minister John Hutton.

The restructuring will result in at least £100m for investment in frontline NHS services, the Department of Health says, with each new authority covering an average population of 1.5 million people.

Their functions will include supporting primary care trusts and NHS trusts in delivering the NHS Plan in their area and building capacity and supporting performance improvement across all their local health agencies.

Mr Hutton said: "By giving more power and responsibility to those working in the NHS, we need to shift the centre of gravity from Whitehall to the NHS frontline.

"The new stategic health authorities, together with PCTs, will establish new, streamlined, less bureaucratic and more devolved management of the NHS. Increased power and responsibility will rest with people working on the frontline. "PCTs will have the majority of the responsibility for commissioning services. Strategic health authorities will play a crucial role in brokering solutions to local problems, holding local health services to account and encouraging greater autonomy for NHS trusts and PCTs."

He added: "We have consulted extensively with patients, the public and those working in the NHS on the boundaries of the new strategic health authorities."

The change "represents a significant step towards realising a less centrally managed NHS, but within clear national standards, delivered locally," he said.

Designated chairmen and the appointment process for chief executives of the new authorities will be announced shortly.