Elderly people could be forced to pay up to £100,000 to fund care costs under new proposals from the government.

Yesterday (11th July), health secretary Andrew Lansley unveiled his white paper on social care in the UK, which he claimed represented the "most radical reform of the system in 64 years".

Mr Lansley announced plans to give elderly the chance to apply for loans from their local authorities to fund their care fees, thus negating the need for them to sell their homes during their lifetime to raise capital.

After their death, their loved-ones would then pay the bill and any interest on the loan by selling their late relative's assets.

Although no decision on a cap on care costs is expected before the next spending review, Department of Health analysis shows that the government has looked at introducing a £75,000 and a £100,000 limit.

This figure is nearly three times higher than that suggested by economist Andrew Dilnot, who called for a £35,000 cap on costs.

Another option posed in the white paper is an opt-in scheme that would cap the contributions of those who paid into an insurance policy.