He said care in the home was being expanded and that was the best place for people to be looked after.

The King's Fund report calls for the current means-tested care system to be scrapped.

In its place, everyone in need would be entitled to an agreed level of free care, which they could top up if they wanted.

If this system were in place at the moment, the Wanless report reckons that half a million more elderly people would be getting some form of care from social services, such as home care, day care or a place in a residential home.

But it would mean almost doubling the amount of Britain's national income spent on caring for the elderly over the next two decades - to nearly 2% of our entire economic output.

Ageing population

As a nation, we're living longer. Generally, that's good news - but it will put a huge burden on today's generation of children as a they struggle to look after their parents.

In two decades' time, experts predict that the number of people aged over 85 will have doubled.

Those needing high levels of care are expected to rise by 50%. But the birth rate is falling, which means there will be fewer young people to look after them

The Wanless report points to widespread levels of dissatisfaction with the current system, which is patchy and difficult to understand.

Means-testing can mean that those with modest savings or assets - such as the family home - end up losing out.