A CRUEL “postcode lottery” which denies help to many elderly people needing care in their own homes must be scrapped, a landmark report said yesterday.

The Government-commissioned review demanded a new nationwide test to tackle the unfairness of some town halls helping pensioners unable to wash, cook or shop for themselves while others refuse.

Among the councils failing to fund those “moderate” needs are Knowsley, Sefton and Wirral. St Helens and Halton do pay for them. Liverpool Council currently pays for the service, but is currently consulting over removing it.

Yesterday’s shake-up would also allow people with care needs to move to a different area of England without losing the package of help they currently receive.

Councils would also be required to offer loans to elderly and disabled people moving into a care home – to prevent them from having to sell their property – which would be recouped after their death.

The system of deferred payment of fees has existed for a decade but, in a second postcode lottery, some local authorities have been criticised for refusing to offer loans.

The proposals were made in a review into the funding of care, led by economist Andrew Dilnot, which – as expected – called for a £35,000 lifetime cap on fees to avoid people having to sell their homes.