The government has sought to reach out for people receiving private care and other elderly people.

Pensions look set to be a crucial constituency in the forthcoming election.

So far only the Liberal Democrats have promised free elderly care.

But Labour and the Conservatives have become embroiled in a battle over who is offering older people the best deal.

Patricia Hewitt, the trade secretary, said: "Labour has acted to increase the prosperity of all our pensioners, with extra help for the poorest and those with caring responsibilities. The Tories would penalise the poorest pensioners and carers."