Charities are being forced to subsidise state-funded places for the elderly in care homes after the government refused to pay their fees.

Figures to be released today reveal that there has been a dramatic increase in the amount of money charity-run care homes are having to pay to subsidise most state-funded places because, they say, councils are failing to provide enough money.

A spokesman for Help the Aged said: "The government is failing to recognise the importance of social care. As a result the pressure on providers, care homes are closing at an alarming rate."