The Government cap on care "does not include the cost of board and lodging", the care minister Norman Lamb told Daybreak.
Instead, the Government will set a cap on "the care that you need", such as "help with washing", the Lib Dem MP explained.
"Of course you would want to go further in having the cap lower - I understand that, we all want to do that, but it has to be sustainable.
"And the problem is we are all living longer and the costs of care keep escalating."
He added: "It's a bit rich for Labour to criticise it because over 13 years, they did absolutely nothing."