The Tories on Wednesday staked a claim for the grey vote with a package of measures targeted towards Britain's growing pensioner population.

Accusing the government of having "let pensioners down" the Conservatives said they would offer the elderly a better deal.

The party said it would deliver an inflation busting increase in pensions for all pensioners next year and raise the age-related income tax allowances by £2000 - a move which would remove one million pensioners from the tax system altogether.

A Conservative administration would also abolish the taxes on savings and dividends, the party's shadow social security secretary, David Willetts, announced.

New plans for the long-term care of elderly were also detailed by the party.

A Tory government would end the system which forces pensioners to sell their homes to pay for long-term care. However the party will not provide free personal care.

Liam Fox, the shadow health secretary, said Labour had failed to tackle the "obscenity" which has resulted in 160,000 people being forced to sell their homes to pay for care since Labour was elected.

"Many people find it completely unfair that that the state should raid the assets of people who have worked hard and saved during their lives," said Dr Fox.

"The next Conservative government will tackle this injustice. We will ensure that responsible and thrifty people who have made reasonable provision for the expected costs of long term care are protected from the loss of all they have saved and worked for throughout their lives."

He also said that the Tories would make new hi-tech digital hearing aids available to all pensioners who needed them and would increase hospice funding by 40 per cent.

"The manner in which we treat our dying is surely a measure of how civilised a society we really are. They deserve the right to care in a humane and dignified environment," he said.