PLANS to extend free care for elderly people living in their own homes were last night cautiously welcomed by pensioners' welfare groups.

But they fear the changes, unveiled in the Queen's Speech, would be made only by cutting other benefits relied on by older people.

The proposals will be at the heart of the Government's final legislative programme before next year's General Election.

They aim to help people remain longer in their homes rather than going into residential care, by allowing free personal care for up to 280,000 elderly and disabled people with the greatest needs.

The move followed growing concern that many pensioners were being forced to spend all their savings and sell property in order to fund care.

The ideas will cost £670 million a year, and it is the size of that sum which worries John Davis, vice-chairman of North Staffordshire Pensioners' Convention.

He said: "While it is good that more people will have free social care and stay at home longer, the Government is talking about reducing Motability and disability living allowance to pay for it, and that would rob pensioners of their only lifeline.

"A relative of mine is currently in a care home and watching her life savings vanish to pay the fees. People like these are worried that their homes will be next to go.

"They feel it it is unfair that, because they have saved all their lives and not spent recklessly, they will suffer in old age."