The funding will be used for a range of schemes such as minor refurbishment of hospital wards. It will allow Ward Sisters in hard-pressed areas to invest up to £2,000 in those wards where needs are greatest.
The announcement follows an Assembly debate which called for the traditional matron to be brought back into hospitals.
He said: "Under the healthcare reforms of the 60s and 70s the role of Matron was replaced with the role of Director of Nursing. However, our hospitals are now much larger and more complex.
"Today, it is the Ward Sisters who deliver a 24-hour service covering all aspects of patient care. It is the Ward Sister that the public looks to, to set and uphold standards including cleanliness.
"We must now ensure that the Ward Sisters have the authority to run their wards and that we support them in doing this. I want to make sure that when the Ward Sister walks onto their ward they have the authority to take control of every aspect of everything that happens in their area."
In order to support Ward Sisters, the Minister said he had announced additional funding last June.
He continued: "Last year I announced a phased allocation of money for Ward Sisters which will increase to £2 million recurrently in 2010/11.
"Unfortunately I was initially unable to proceed with the funding because of a lack of clarity over my budget but now that I have agreement I am able to proceed. This extra funding will be used to release at least 20% of Ward Sisters' time to focus on quality, safety and patient experience issues.
"In addition I have also allocated an extra £0.5m in general capital for a range of schemes such as minor refurbishment of hospital wards. This additional funding will allow Ward Sisters in hard-pressed areas to invest up to £2,000. I will ensure that this money is directed towards those wards where needs are greatest.
"I will continue to support Ward Sisters and I also look to the Chief Nursing Officer, the Chief Executives and the Directors of Nursing to put in place whatever measures are necessary to provide Ward Sisters with the support and authority to do their job effectively."
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