Research led by the King's Fund has attacked the current system as "not fit for purpose" and called for an overhaul.
The future of care funding: time for a change has called for a system that combines a clear-cut entitlement to care and support with a sharing of costs between individuals and the state.
Cllr David Rogers (Lib Dem), chair of the Local Government Association’s Community wellbeing board, said:
“This report underlines how inadequate and iniquitous the current care system is. It is too complex for people to understand and too bureaucratic for local authorities to administer.
"The government’s announcement of a green paper was a long overdue recognition that the system is creaking at the seams, and represents an opportunity for lasting reform.
“Councils want to provide the excellent standard of care people need and deserve, but they have been hamstrung because there is simply not enough money in the system to cope with rising levels of demand. There is a clear need for a system that is fair and which people can rely on. The extra£500m allocated to social care from the concordat between local and central government will go some way to providing the foundation for us to achieve this.”
Chief executive of the Social Care Institute for Excellence , Julie Jones, said the consultation offers a "serious contribution to the much-needed debate on funding".
"The current situation means that people struggle to understand the system and whether their money is being spent wisely. We are increasing our efforts to support both those who commission public services, and the carers and individuals who purchase their own services, with clearer guidance on what works and is good value."