Figures which suggest that there are 400,000 people resident in a care homes as at 2011 and that this number will rise to 1.5 million by 2081 emphasise the importance of social care both to families contemplating such measures and to the state itself. Figures suggest that the average length of time a person spends in a care home is two years and that fees of about £30,000 a year will be paid; however for many their total expenditure will be far greater.

Partly this is because those who have assets over the current £23,250 limit tend to be wealthier with most having assets far exceeding that figure and that, though it is a generalisation, many people in this position tend to be in better health than those who qualify for local authority assistance. Currently about 41% of those going into care homes are self-funders and they live on average for about four years, costing £55,000 a year. A smaller number, about 12%, live for roughly eight years after being admitted to a care home, which would push their total expenditure towards the £440,000 mark.

New government proposals on long-term care may be introduced although it is unlikely that any new legislation on elderly care will come into force before the next election in 2015. However, proposals include a scheme which would see individuals or their families paying for the first £50,000 of their care with the state subsidising the rest.

The intention would then be for insurance companies to provide products to meet the first £50,000 to further help hard-pressed families. However, these are only recommendations and have not been voted on. The plans will be published on July 4 and ministers hope that there will be a white paper going through the House of Commons later in the year which will set out the framework of a new funding system.