The funding gap has been predicted in a report by the Department of Health, which estimates that a quarter of the UK adult population will be aged 65 or over by 2028, while the number of people over 85 will have doubled and those aged over 100 will have quadrupled. The Department of Health also claim that advances in medical knowledge and practice indicate that many disabled people will also live longer and healthier lives. These statistics mean the cost of care will rise to around £24 billion, which is almost double this year's bill.

The report said that a "radical re-think" was required to tackle the problems that are posed by an ageing population. It read: "We expect over 1.7 million more people to have a need for care and support in 20 years' time. A radical re-think of the care and support system is needed to address these challenges."

In his speech, Mr Brown said that it was essential that the people who have worked hard throughout their lives and saved towards retirement were treated fairly in the provision of social care. However, he also warned that there was "no easy solution" to this problem.
Mr Brown said that he understood the public's anxiety about the state of social care. He said: "We can - and must - look to give people the opportunity and the support to save for their old age in a way which insures them and protects their houses and their inheritance."

At the moment, state support for social care includes services such as help in cooking, shopping and cleaning It also allows people with savings worth less than £22,250 to get help with care home fees. However, due to rising property prices, not many homeowners can actually qualify for help. In fact, charities estimate that around 70,000 people per year are forced to sell their homes in order to pay for residential care. The cost of residential care in the UK is an average of £450 a week.

The new system proposed by the Labour Government would most likely see everyone receive government help in the form of a basic contribution from the state towards the cost of his or her care. This amount could then be ‘topped up' with more funds just like an insurance scheme.