Age Concern says it will back any revolt by peers over the government's refusal to regulate the long-term care insurance industry.

Peers want regulation included immediately in the Financial Services Bill to prevent elderly people falling prey to pressure-selling of unsuitable residential care policies.

Peers, including Labour members, have threatened to defeat the bill if an amendment on the issue by Lord Lipsey is not included.

Although the government has set up a working party to examine care insurance regulation, it is not due to report until the summer and has met only once.

A spokesman for Age Concern, whose director general Sally Greengross is herself a peer, said: "We're one hundred per cent behind the peers. If there is a revolt, we'll be part of it."