Gordon Brown has pledged to reform the social care system as ministers warned of a £6billion "black-hole" in the government's budget for providing for elderly people.
The Prime Minister said that the pressures of a rapidly aiding population would mean that, without reform, the current system would be economically unviable in 20 years.
His speech, to the King's Fund on Monday, came as the government kicked of a six-week consultation as to how the system would be funded.
Forecasters say that within 20 years a quarter of the population would be over 65 and the number of people over the age of 85 would have doubled.
Mr Brown told health workers and unions that he understood the concerns of individuals who have to sell their homes to cover the cost of care in their old age.
To combat this he said that there was a need to help people save better for their old age so they would not have to rely on the value of their homes and inheritance.
Moreover he suggested that where possible people should be cared for from their own homes.
He added: "This is an issue at the heart of our ambition to create a fairer Britain. Of course, helping relatives is a challenge that most families rise to - however difficult it becomes."
The comments follow a statement by Health Secretary Alan Johnson who warned that the cost of maintaining social care was set to double to £24 billion by 2026.
Without new sources of funding the government expects there to be a £6 billion shortfall.
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