Equity release has been identified as one of the financial products which can help close the current gap in social care funding.

Andrea Rozario, director-general of Safe Home Income Plans (Ship), has welcomed a report on social care from the Health Select Committee (HSC) which called on the government to analyse the potential funding streams for social care services in the UK.

Ms Rozario claimed that clarification over which financial products will be used to pay for social care will ensure the financial services industry is better equipped to develop such products.

"A cap on the amount that individuals are expected to contribute towards the cost of any care they need will help people to plan ahead, but there needs to be clarity over these costs and any other associated ones," she added.

"Many may still struggle to save for potential care costs - which is where equity release can play a part in funding a range of options including domiciliary care."

The HSC's report claims that the current social care system is too disjointed,  prompting MPs to call for change.