Liverpool City Council has committed £66m to overhaul home care services to enable more people to live independently.
The council announced that despite improvements in quality, it would not be renewing the current contract with providers when it expires in September.
Over the next three years, the council will invest £22m a year with the option of investing £154m for a further four years after that if the project is a success.
It will shift to provision that is more personalised, offers greater choice and is more efficient.
A report to councillors said: “There is also a need to work with the sector to maximise efficiency of delivery.
“The current contracting arrangements are too rigid to support the innovation required in home care to make this happen.”
