The government has scrapped a proposed cap on adult care costs that was due to come into force next year.

In a speech this week Chancellor Rachel Reeves said the proposals, which would have limited lifetime contributions to personal care at £86,000, were unaffordable given current budgetary constraints. By shelving them the government hopes to save £1bn by the end of next year.

The plans were originally mooted more than a decade ago and had been scheduled to come into force in October 2025.

However, last month the County Council Network (CCN), which represents 37 of England’s largest local authorities, described the plans as “impossible to implement” by the deadline. It warned that the vast majority of local authorities were in no place to introduce the reforms next year because of significant budgetary and staffing issues.

Charities in the sector have meanwhile reacted with dismay to the Chancellor’s announcement.

Caroline Abrahams, Charity Director at Age UK, said: “The fact that we now know [that] the scheme will not be going ahead is really bad news for all those older people who were hoping against hope for some relief from their sky-high care bills – in the short term at least it seems they are on their own.

“The problem of high care bills is however very real and the government must tackle it as part of a broader package of measures designed to stabilise and reform social care – and sooner rather than later.”

Last month the department for Health and Social Care said it was dedicated to solving social care problems.

A spokesperson said: “We are going to grip the social care crisis, starting with the workforce by delivering a new deal for care workers. We will also take steps to create a National Care Service underpinned by national standards, delivering consistency of care across the country.”