There are currently around 800,000 people in the country who receive no council-funded care despite having some form of need. Many are forced to sell their homes to pay for their care.

The charity estimated that this number would increase to around 970,000 within two years as the population ages and costs rise.

"Care system in crisis"

Michelle Mitchell, Age UK’s director, said thousands of people could die as a result of the funding changes.

She said: “The Chancellor has said he will limit the impact of cuts on the most vulnerable in our society. He should put his money where his mouth is and promise right now that care in old age will be protected in his spending review.

“Our care system is in utter crisis – it’s already starved of funding, service provision is patchy and when people do receive help, it is often of poor quality.

“If ministers introduce cuts which deny support to half the older people assessed as needing care at home, quite simply, lives will be put at risk.”

Earlier this year, the Institute for Fiscal Studies estimated that the Government would be forced to impose cuts of around 13% to save enough money to plug the hole in the public finances.

Possible funding gulf of £1.75 billion

Age UK, in research it commissioned from the London School of Economics and the University of Kent, concluded that such cuts would equate to a funding gulf of £1.75 billion for social care.

According to the latest figures, collated by the Department of Health in 2008, just under 460,000 people in the UK receive care at home.

The services range from help with washing and dressing to assisting people with the preparation of meals.

Those at the lowest level of need might only need half an hour’s help at the start and end of the day to be able to continue living in their own home but the charity says such care is vital for the individual’s independence and self-respect.