The NHS Confederation has responded to the All Party Parliamentary Group for Dementia report.
Jo Webber, NHS Confederation deputy director of policy, said dementia was one fo the biggest challenegs for the NHS and services would need to improve significantly to support the needs of the growing group.
She said: "From the GP surgery to the hospital ward. We have to be honest and say we are not there yet.
"Raising the standards of dementia care will require moving services out of traditional hospital settings and in to residential care and people's homes where they can receive the most responsive care."