Its changes will include rebalancing the threshold for detention, weighing up both the risk to the public and the therapeutic benefit to the patient.
The draft legislation will also look to strengthen the rights of patients to express a treatment preference and set out a plan for each individual’s care, providing them with a route to eventual discharge.
Ministers wants to reduce the use of Community Treatment Orders, which permits authorities to restrict where a person lives when released from a mental health care facility, as part of the overhaul.
Health Secretary Sajid Javid said: “The Mental Health Act is now 40 years old.
“We need to bring mental health laws into the 21st century so everyone who needs help can get the best possible care.
“Our proposed legislation will ensure people from ethnic minority backgrounds, people with learning disabilities and autism and people in the criminal justice system receive the mental health care they need to support them to get better.
“This is part of my mission to tackle disparities and level up healthcare across the country ensuring everyone has the ability to live healthier, happier lives.”