Help the Aged policy director and chair of Fair Rate for Care Campaign, Paul Cann, said:
'The lack of core funding is driving many good care homes to the wall, leaving thousands of older people with chronic illness in crisis.
'The underlying shortage of social care funding must be addressed in this July's Comprehensive Spending Review, if the crisis is to be averted and older people be guaranteed sustainable, high quality long term care.
'The Fair Rate for Care Campaign believes this proposed£1bn be a starting point to ensure that older people with complex and diverse residential and nursing care needs get the right high quality care at the right time in the right place.'
The Fair Rate for Care Campaign is a coalition of 30 organisations including charities, care home providers and experts in the field of residential care.