The Mental Health Bill has had its second reading the the House of Lords.
The Bill aims to modernise the Mental Health Act, giving patients a greater say in their care, along with bolstered support from family and friends as part of treatment to ensure that patients' interests are protected and that their voice is heard throughout the treatment process.
An independent revise of the Mental Health Act found rising rates of detention under the act, along with racial disparities, and poor patient experience.
The Bill will make it a legal requirement for each patient to have a care and treatment plan and will also give patients the right to an Advance Choice Document, which can be used by patients to set out what they want their care to look like in the event of a mental health crisis.
At the same time, police and prison cells will not be used to place people who need care under the Mental Health Act.
Secretary of state for health and social care, Wes Streeting, said: "The Mental Health Act is there to protect people when they’re at their most vulnerable, and in many cases, it has saved lives. But it is hugely outdated, depriving people of their liberty, especially autistic people and people with a learning disability.
"We are now one step closer to bringing forward the essential reforms that will transform the care of some of our most vulnerable people, meaning patients receive the right care in the right place.
"Modernising the act will strengthen the decision-making processes, helping to better support people, and giving them the appropriate and compassionate care they need."
Claire Murdoch, NHS national mental health director, said: "This Mental Health Bill is a once in a generation opportunity to ensure that patients experiencing serious mental illness and crises receive safe, modern, evidence-based care, and that the needs and wishes of patients and their loved ones are central to their care and better mental health outcomes.
"This comes alongside the NHS’s work to transform mental health services which are treating record numbers with existing resources – either through intervening earlier with hundreds of NHS teams working in schools, or trialling new 24/7 crisis mental health hubs to prevent people needing hospital care in the first place, and if an admission to hospital is needed the health service is working with local services to ensure this is delivered in a safe and therapeutic environment close to people’s homes."