Health Minister Jeremy Hunt has confirmed government plans to cap long-term care costs at £75,000, and a new means test threshold of £123,000.
This means a person can hold £123,000 worth of assets and still receive support from the state for their care home costs.
The reforms will cost the £1 billion a year by the end of the next Parliament.
Hunt (pictured) also confirmed that the cost will be met in part by extending the freeze on the inheritance tax threshold at £325,000, or up to £650,000 for couples, by three years from 2015-16.
Hunt said: 'As we get older none of us can have any way of knowing what care needs we will eventually face.'
‘We want to accept a national eligibility test and set a standard so that no one should have to sell their home to pay for their care.'