The government must increase funding by £8bn to restore levels of quality and access to those observed in 2009/10, according to the House of Lords economic affairs committee.
In a report published this week it said that social care funding has decreased most in the most deprived areas.
It added that local authorities can’t afford to pay care providers a fair price, forcing providers to choose whether to market to those people who fund their own care or risk going bankrupt.
Lord Forsyth of Drumlean, chairman of the committee, said: “Fixing underfunding is not difficult. The government needs to spend £8bn now to return quality and access in the system to an acceptable standard.
“Fixing unfairness is more complicated, but the government has ducked the question for too long.
“They need to publish a white paper, not a green paper, with clear proposals for change now.”