Charities subsidising residential care for older people may be able to argue for more cash from local authorities in the wake of an independent report.
For the first time the report has provided a toolkit for calculating reasonable operating costs for care homes, which can be used by local authorities to work out a fair price for publicly funded places in privately run homes.
The mechanism confirms what charity care home providers have long been arguing - that local authorities under fund the sector by around £1billion annually.
However, Brian House, chief executive of Abbeyfield, which represents 80 charitable societies providing residential care facilities, said that many local authorities claim they are unable to pay additional funds.
The author of the report, William Laing of care analysts Laing %26 Buisson, proposes a phased-in central government grant linked into raising care home standards to get round the problem.