Personal Care at Home Bill: Full details

Plans to extend care for the elderly are at the heart of the Government's final legislative programme before the general election.

Gordon Brown used his Labour conference speech in September to promise a new national care service, helping people remain in their own homes rather than going into residential care.

The move followed growing concern that many pensioners were being forced to spend all their savings and sell property in order to fund care.

The Personal Care at Home Bill, outlined in the Queen's Speech, would guarantee free personal care at home for up to 280,000 elderly and disabled people with the highest needs - although 166,000 do already receive free care.

A further 130,000 who need home care will also benefit for the first time from other measures, including adaptations to their homes - such as the installation of electronic pill dispensers - so that they can carry on living in them for as long as possible.

Officials estimate that around 400,000 people will benefit from the measures in the Bill, which will cost £670 million a year to implement.

Aides to Health Secretary Andy Burnham have been keen to contrast the measures with Tory plans for an insurance scheme to cover the costs of residential care in return for a one-off payment of £8,000 on reaching retirement age.

Health Secretary Andy Burnham said: "We know that people want to stay independent by living in their own homes for as long as possible. This Bill will help families by offering free personal care at home for those with the highest needs, regardless of their means.

"Around 400,000 people - including those with serious dementia or Parkinson's disease - will benefit. And it is a first step towards the National Care Service, which will mean a simple, fair and affordable care system for everyone."

The legislation was broadly welcomed by campaigners.

Steve Ford, chief executive of the Parkinson's Disease Society, said: "While we are pleased to see additional funding for personal care at home, we are extremely concerned that younger people with conditions like Parkinson's will be at risk of falling into severe financial difficulty, with reduced independence because the new funding isn't directed at all those in greatest need."

In a statement, Help the Aged and Age Concern described the move as a "first step".

"It will be essential that councils are properly funded to provide this care, so that there are no perverse incentives to either push older people into residential care homes earlier than needed or assess their needs as not critical enough to warrant free care at home," the statement said.