A CRUEL “postcode lottery” that denies help to many elderly people needing care in their homes must be scrapped, a report says.

The Government-commissioned review called for a nationwide test to tackle the unfairness of some town halls helping pensioners unable to wash, cook or shop for themselves and some not.

Among the councils that fail to fund the “moderate” needs are Durham, Hartlepool, Middlesbrough and Redcar and Cleveland. North Yorkshire and York do pay up.

Darlington Borough Council funds even low care needs, but is consulting on whether to raise that to substantial from the autumn.

A nationwide test would also allow people with care needs to move to a different area without losing out.

Councils would 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. Deferred payment of fees has existed for a decade, but some councils refuse to offer loans.

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

In addition, only people with assets worth more than £100,000 would pay the full costs of going into care, a threshold lifted from £23,250.

Yesterday, Health Secretary Andrew Lansley said the proposals would be “a basis for engagement”, hinting that the cap might be higher than £35,000.

He was criticised for allowing the timetable set by the review’s authors – requiring firm Government proposals by next Easter – to slip.

The report also urged the Government to tackle the lottery of people needing care in their homes.

The review suggested the threshold should be set at substantial, until the system could be replaced.