Housing for elderly getting £200m boost

The five-year fund, which Ministers believe will help to provide an extra 6,000 properties, will form part of the Care and Support White Paper due to be published on Wednesday.

Health Secretary Andrew Lansley said it was vital to ensure the growing elderly population had a better chance of remaining independent and ease pressure on the severely stretched care home sector.

But the announcement came as the Government faced fire from campaigners over its failure to commit to funding a cap on care costs for individuals despite confirming its support in principle for the policy.

A progress report to be published by Ministers this week alongside the White Paper will give support in principle to the recommendation of a review of services in England to limit the amount any individual must contribute.

However it will say that a decision on whether the £1.7bn a year policy can be afforded will have to await the next spending review in 2013/14 – making reform unlikely until after the next election.

Mr Lansley said: “Demand for supported housing will increase as a growing proportion of people over 65 are home owners. It makes sense for us to bolster the housing market so we have more suitable housing in the next few years.”

A £35,000 cap was recommended last year by the review chaired by economist Andrew Dilnot – with pensioners expected to take out insurance to cover that sum and the state covering the balance.

Age UK welcomed the backing of the Dilnot blueprint but urged Ministers to make more concrete commitments.

Charity director general Michelle Mitchell said: “If the Government accepts the Dilnot recommendations in principle that is definitely a step forward and welcome, but with care in crisis now it is not nearly enough.

“The Government must set out the process by which it will make the all-important decisions about funding social care, including timescales and milestones. That is the very least older people and their families will be looking for next week.”

Alzheimer’s Society chief executive Jeremy Hughes said it was “an empty promise” and warned of “a catastrophic failure of political leadership as families continue to struggle to care for people with severe disabilities”.

Shadow Health Secretary Andy Burnham said: “This decision to go down this separate route and do their own report reflects a decision to put the reform of the funding of social care on a slower timetable.”