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Health Secretary Jeremy Hunt said the government's social care reforms will aim to "protect people's inheritance."
Speaking on the BBC's Andrew Marr Show, Hunt said the current situation was a "scandal".
The government are expected to announce an inheritance tax freeze - which could affect thousands - to pay for an extension in state support for elderly care.
- A three year extension to the inheritance tax freeze - which would run until 2018 - would affect 5,000 people.
- Anybody bequeathing more than £325,000 or £650,000 for couples has to pay 40% tax on anything over those levels.
- The move is intended to cover the £1 billion cost of introducing a cap on the total amount anybody has to pay on social care.
- The expected £75,000 cap is more than twice as high as the £35,000 limit suggested by the independent Dilnot Commission.
Nick Clegg said a Government proposal will help many people who would otherwise have to sell their home to pay for their care.
He said: "One of the bits of the announcement we will be making at the beginning of the week is to say that we are going to dramatically increase the means test threshold.
"We will very much act as Dilnot recommended, by dramatically raising the point at which the assets you have [is raised], before you have to start paying for your own care.
"That will help many, many people, not just people might otherwise be selling their homes, which might be worth quite a lot, to pay for the care. But also many people who don't own their own homes, or own homes that are not worth very much in other parts of the country."
Mr Clegg made the comments on Sky News' Sunday Live with Murnaghan.
Health Secretary Jeremy Hunt said the new care proposal, which will be unveiled tomorrow, "will cost a billion pounds a year" and its aim is "to help hard working people."
Hunt did not tell the BBC's Andrew Marr Show when the proposal would be implemented and did not comment on how the government would pay for the new legislation.
A spokesperson for the Alzheimer's Society has said that the government's proposal for the elderly to pay up to £75,000 before receiving state care support will only help 'the few.'
The society said:
Nick Clegg has described proposed reforms to the care funding system as helping to "protect some of the least wealthy pensioners."
In an article for The Sunday Telegraph, the Deputy Prime Minister said:
This is significantly less than the £1.7 billion figure suggested by the Dilnot Commission and resisted by Chancellor George Osborne.
In a long-awaited coalition announcement, he is expected to say that the threshold will rise from £23,250 to £123,000, with a sliding scale of support.
The means-tested threshold is higher than the £100,000 assets limit recommended by the independent Dilnot Commission appointed by David Cameron to make recommendations.
Latest ITV News reports
The Government will set out plans for the long-term funding of social care in England. Find out how it will affect you and your family...
Elderly care bills are to be capped by the state in a £1 billion move expected to be funded by dragging more people into inheritance tax.