Conservative leader, William Hague, is set to pledge "granny bonds" as a measure to protect people form having sell their homes, or use other assets, to pay long-term residential care bills.

The proposals will give people who save up to a certain sum - expected to be £25,000 - in a special long-term care fund a guarantee that the government will fund the balance if care costs exceed the saved figure. Shadow health secretary, Liam Fox, who will launch the scheme with Hague in Yorkshire today, said: "What is the point of saving to be able to leave something for your children and grandchildren is the state confiscates almost all your savings - and your house too - to pay for care costs?"