Care home owners will be forced to prove they are financially stable to avoid a second Southern Cross-style collapse, officials have said.
The Government is to implement a series of safeguards to prevent a repeat of the crisis.
Care and Support Minister Norman Lamb announced that the Care Quality Commission (CQC) will be able to monitor the financial health of the largest providers.
The abrupt collapse of Southern Cross, Britain's biggest care homes operator, caused turmoil for more than 30,000 elderly and vulnerable people in 2011.
More top news
A boy was left hanging precariously out of a car after it crashed on a bridge
During a nine month investigation by ITV News, we learned of Kotey’s role influencing extremists in west London.
A Metropolitan Police investigation into an allegation of sex abuse against Lord Brittan was "fully justified", a review has found.