Chancellor George Osborne has handed local authorities the power to charge an additional 2 per cent in council tax to fund social care.
The Chancellor says the reform will allow authorities to add up to a total of £2bn to the overall social care budget.
It comes months after the Government delayed plans to introduce a cap on the cost of social care to 2020.
At the same time, the Chancellor also announced the Better Care Fund – first launched in 2013 to pool resources between local government and NHS and provide more integrated services for older and disabled people – will rise by £1.5bn by 2019/2020.
Osborne says the funding will mean that spending on social care will have risen in “real terms” by the end of this Parliament.