The Act gave effect to the structural and administrative reform of the health system outlined in the 1972 white paper on National Health Service reorganisation.
The 1975 white paper further emphasised the need to move from an institutional model of care to community services. It highlighted the need for early intervention and prevention of mental illness.
Barbara Castle, as Secretary of State for Health and Social Services, campaigned to abolish pay beds in the NHS, but legislation introduced to this effect was later repealed under Margaret Thatcher.
During the 1970s, there were several public reports of mistreatment and poor quality of care provided to people with severe learning difficulties and mental health illnesses.
The Act received royal assent on 4 April 1979, providing for the establishment of the Central Council for Nursing, Midwifery and Health Visiting (UKCC).