Councils could save £730 million in long term care (LTC) costs if technology and remote monitoring-based solutions are deployed.
FACE assessment tools, accredited by the Department of Health and used throughout the UK and Ireland by NHS, social care and independent sector organisations found the time an elderly person can live in their own home, as opposed to requiring council-funded residential care can be extended, with savings of £3m to £7.8m for councils.
This equates to approximately 7.4% - 19.4% of their social care budget for older people.
The report looked at the costs of providing care services for people who needed care at home and those that needed residential care.
The research looked at health-monitoring solutions for the likes of falls, seizures and the taking of prescription drugs, as well as environmental monitoring for elderly people with dementia and similar conditions.
Environmental monitoring covers leaving the property during the night; changes in temperature extremes in the home; fire; flood; and other potential emergencies, such as carbon monoxide.
Simon Arnold, managing director of healthcare group Tunstall, which provides telehealthcare, commented: "Most elderly people want to live life as independently as possible, and in their own homes.
"Telecare provides a means of monitoring a person's environment unobtrusively, with wireless sensors placed around the home which raise the alarm if they detect a possible problem.
"A central home hub will automatically create an alert at a monitoring centre, where trained operators can then arrange an appropriate response."
On average, there are 38,500 people over the age of 65 in a council serving a typical population of 250,000. These councils have an estimated social care budget of £40m, with over £14m (35%) of this spent on residential care provision.
