Shortfall of £2.3bn a year in England’s care homes ‘putting people at risk’

Exclusive: Funding hole directly affects elderly people whose bills are entirely or partly paid for by councils

• Not shoved miles away': Cumbrian fight to keep care in the community

A 2.3bn-a-year hole has been exposed in England's elderly care home system, leading to warnings that living standards for hundreds of thousands of vulnerable people could be at risk.

A government exercise to define the true cost of care has uncovered a 20% shortfall in council funding needed to look after close to 200,000 people aged over 65 in care and nursing homes, the Guardian can reveal. A further annual hole of at least 650m has been found in funding for carers who look after people in their own homes, although that is likely to be a significant underestimate and could be over 1bn more, according to providers.