A health trust has been heavily criticised for "institutional abuse" of people with learning disabilities.

The Healthcare Commission, which carried out a review at Osbourne House in Hastings, said care was "simply not acceptable".

It is the second report in six months to highlight neglect of people with learning difficulties.

The commission will now carry out a national audit of 200 NHS and private services in England.

The results will be made available later this year.

The review of care provided by Sutton and Merton Primary Care Trust (PCT) also looked at one of its hospitals and other community homes in south London. It was requested after a number of serious incidents, including allegations of physical and sexual abuse.

Although the trust was found to have followed correct procedures when responding to the serious incidents, the commission concluded "outmoded, institutionalised care" had led to neglect of people with learning difficulties.

It found "impoverished and completely unsatisfactory" living conditions, with some people staying in cramped rooms and only having access to three or four hours of activity a week.

Staff were not properly trained or supported and there were failures in management and leadership at all levels, from managers to the trust's board.

People with learning disabilities were not supported to become independent but instead were "institutionalised".

Examples of poor care included people being wrapped in blue tissue paper at mealtimes to keep their clothes clean and being fed too quickly to allow them to enjoy the food.

The commission said the needs of individuals had been sacrificed in favour of the needs of the institution.

Anna Walker, chief executive at the commission, said: "The standard of services at Sutton and Merton was simply not acceptable in the 21st Century."

Sutton and Merton PCT said it fully accepted all the findings and recommendations in the Healthcare Commission report.

PCT chief executive Caroline Taylor, who asked the commission to investigate the service, said: "The commission pulls no punches in its report and, equally, we must not hold back from making the necessary changes to put things right for this very vulnerable group of people.

"At a time when the PCT was faced with many pressures, we took our eye off the ball and paid too little attention to the day-to-day running of the learning disability services.

"We now have new management in place with new systems and we won't fail our residents from now on."

David Congdon, head of campaigns and policy at Mencap, said: "This report once again highlights how services for people with a learning disability are given low priority by the NHS."

Shadow Health Minister Tim Loughton, MP for East Worthing, said: "We are concerned that the latest revelations underlie a systemic abuse of people with learning disabilities and that their views and concerns are not being listened to."