FAMILIES failed by a scandal-hit mental health trust have blasted the decision to keep chief executive Katrina Percy in post.

No one will lose their job at Southern Health despite months of pressure over its failure to investigate hundreds of deaths.

An internal review has found "no evidence of negligence or incompetence of any individual board member."

Relatives of patients who suffered under the trust's care have spoken of their "extreme shock" and described the decision as "beyond belief".

Health minister Alistair Burt pledged to discuss the trust's future with health secretary Jeremy Hunt.

Interim chairman Tim Smart admitted today that the organisation was "stretched" and unveiled plans to transfer some services to other providers.

But his response to criticism was blasted as ineffective by the governor who quit over the leadership last year, while families spoke of their "extreme shock".

Mark Aspinall, who quit in April in protest at the board, blasted "vague" promises on transferring services and pointed out Southern Health had already lost some contracts.

"I'm dumbfounded, gobsmacked" he said.

"How is it possible to conduct a review into all the reports that have come out, all of which have criticised the leadership and governance at the trust, and then say 'they might have been a bit weak to begin with but they're improving'?

"That's just not good enough. Who is responsible for the failure at that trust if it's not the chief executive and the board?"

He added: "There is a failure of leadership, a failure of oversight and a total lack of heart and compassion. Calling it a trust is a lexicographic joke. There can be no trust in the trust."

Ms Percy's role will shift from operations to strategy.

The decision has enraged families campaigning on the behalf of vulnerable patients failed by Southern Health.

Investigations by the NHS and CQC found the trust was "continuing to put patients at risk" and had failed in its handling of 450 of the 722 deaths in the trust over four years.

Justice for LB, the group representing relatives of 18-year-old Connor Sparrowhawk, said they were "incredulous" at the decision.

Connor, who had epilepsy and autism, drowned unsupervised in a bathtub during a seizure in 2013.

Southern Health initially denied responsibility for the death but was forced to apologise earlier this month after an inquest found neglect contributed to his drowning.

Investigations by NHS England and the CQC have found failings in the leadership.

Daily Echo:

Southern Health apologised for the death of Connor Sparrowhawk earlier this month after years of campaigning from families

A Justice for LB statement said: "We are extremely shocked that those who have sat in judgement on this matter would allow Katrina Percy to continue in her role as chief executive. We believe it reflects badly on them and their judgement. It is beyond belief given the clear evidence available and a long succession of failures that have come to light."

The statement added: "Sometimes in life it is difficult to understand why certain courses of action are taken or not taken. We cannot understand why this incredulous decision has been made to allow Katrina Percy to remain in her post.

"We have not given up and we are not going to go away. Instead we have been energised by this unjust decision to continue our fight for the people that now have no voice."

Mr Smart announced his decision to families in Winchester this morning after a six-week review of the leadership.

In a statement he said: "I would first like formally to extend my deepest apologies to the individuals and families who have been deeply affected by recent events. I can only imagine the pain they are suffering.

"I am confident that we are making progress, and I know that our staff are doing everything they can to deliver high quality care. But it is clear that some of our more complex services feel less connected to the organisation."

Daily Echo: Tim Smart was appointed interim chairman of Southern Health after the resignation of Mike Petter in April

Mr Smart added: "It is my opinion that the board of Southern Health should have spent longer in its early years creating an integrated, patient focused, operationally efficient culture."

He said the trust ignored the risks of expansion when it took over the Ridgeway Partnership, a learning disabilities alliance in Oxfordshire.

"Ever since, the executive team has been too stretched to guarantee high quality services everywhere that Southern Health operates. To resolve this failure changes are being made to the board."

The statement continued: "I can confirm that Katrina Percy will continue in this role. However, until now she has been too operationally focused in her role.

"She will shift her focus to delivery of the future strategy of the trust which I believe needs to be accelerated."

Announcing the transfer of some services, he said: "The Trust needs to change the way it delivers services because currently it operates across too broad a spectrum of clinical services and too wide a geography. The plan is for Learning Disability Services provided by Southern Health in Oxfordshire to be transferred to Oxford Health NHS Foundation Trust as soon as agreement is reached. Other changes will occur."

The trust runs mental health services for tens of thousands of people across the south, including Hampshire.