The money, which is part of the£22.382m earmarked for Wales in Gordon Brown's Pre Budget Report in November, will go to local authorities to increase the capacity to care for people in their homes and communities.
The minister said: 'The Welsh Assembly Government is determined to ensure that this additional money is put to the best possible use by tackling key concerns for people living in Wales.
'Delayed transfers of care is a problem we must address if our hospitals are to offer an effective service and people are to have the right kind of care in the right place at the right time. Local authorities will receive nearly£20m to increase the capacity to care for people at home and in the community. This will help prevent avoidable hospital admissions and reduce delays to community based care.
'I am also making additional resources, over£0.5m, available to our most deprived communities in Wales in line with the Welsh Assembly Government's pledge to create a better Wales for all.'
Health and social services minister Jane Hutt said: 'This extra£19m will be welcomed by all who are involved in the care sector. Most of us have had experience of ensuring that an elderly or convalescing relative or friend is cared for in the right place. In the vast majority of cases they prefer to be cared for either at home or in their communities. This new funding will help this happen. It is also part of our longer-term agenda, as highli ghted in the Wanless review, to improve social care and thereby reduce pressures on the hospital sector.'
The formula used to distribute the funding for social care are based on a range of criteria that highlight the need for care amongst pensioners and the deprivation levels of pensioners in each local authority. Criteria include: income support recipients aged 60 and over; pensioners living in households which lack central; heating and/or the exclusive use of basic amenities; pensioners with a limiting long-term illness; pensioners living alone in households.
The Deprivation Grant was introduced by the Welsh Assembly Government last year and is based on the Welsh Index of Multiple Deprivation which reflects a wide variety of indicators of deprivation.
WELSH LOCAL GOVERNMENT SETTLEMENT 2004-05
Extra£20m Exemplifications - Totals
and domiciliary care
(3) = (2)+(1)
Isle of Anglesey
Neath Port Talbot
The Vale Of Glamorgan
Rhondda, Cynon, Taff