The government's failure to set out cost principles for the funding of long-term care will slow new solutions from the private sector, according to Just Retirement.
Yesterday, health secretary Andrew Lansley released the government's White Paper Caring for our future: reforming care and support.
Sue Elliott, head of care solutions, said it was disappointing, but not unexpected, that key decisions - including the question of funding have been delayed until the next Spending Review.
She said: "We welcome the fact that the Government has agreed in principle to putting a limit on social care costs and an extended means test"
"But failing to set out the detail of these two key elements will slow down the development of private sector solutions and weaken private sector commitment to invest capital to build new markets."
However, Elliott said she was pleased the White Paper recognised an important role for financial services.
"One of their ‘definitive steps to take forward now' includes setting up an expert working group, to include financial services among other stakeholders, to ensure the right information is available so that individuals can plan ahead for later life," she said.
"We called for more clarity because the current system is far too confusing. The proposals take on board the need to signpost people to sources of expert and trustworthy information, which includes professional financial advisers. This has the potential to be a quick win."
"Overall, we recognise the proposals are the biggest reform to social care since 1948 and should ensure that resources, both from individuals and the taxpayer, are used in the best possible way to promote people's wellbeing and independence."
