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People with moderate incomes and middling levels of need would be the big winners from Sir Derek Wanless’s blueprint for older people’s social care, published today.

Launching his long-awaited report, Wanless said both groups were ill-served by the current system, because publicly-funded services were reserved for those in acute need and on low incomes.

However, he admitted his proposals for a “partnership model” in which services would be available on the basis of a broader range of needs, would be less progressive than the current system.

This would see the state fund around two-thirds of a care package, and then match every pound contributed by the individual above this level up to the full costs. The contributions of the poorest people would be provided through benefits.

The report says the contribution of demographic pressures and the need to improve outcomes would increase the costs of older people’s social care from £10.1 billion in 2002 to at least £29.5 billion, taking into account state and private funding.