The Association of British Insurers (ABI) welcomed the Treasury's announcement of new CAT standards to enable people to buy long-term care with confidence.

It also welcomed the Treasury's consultation on regulating the marketing of long-term care insurance.

The introduction of standards will coincide with the publication of the Health and Social Care Bill that covers free provision of nursing care in residential homes.

Individuals will remain subject to the means test to establish whether they have to meet the costs of accommodation and personal care.