Age Concern and Help the Aged has called for wide-ranging reforms to the care system.
The charity, formed by a merger earlier this year, said that the new Personal Care at Home Bill did not go far enough in making changes to the sector.
Andy Burnham, the health secretary, introduced the £670 million Bill to parliament yesterday.
Measures contained in the proposed legislation include a guarantee of free personal care for 280,000 at-risk people, including sufferers of serious dementia or Parkinson’s disease.
A further 130,000 people needing home care for the first time will also be given assistance in helping them to regain independence.
Andrew Harrop, head of public policy for Age Concern and Help the Aged, said: "This [Bill] represents the first step in ensuring a better deal for older people who need care and support.
"Even if this Bill reaches the Statute Book, fundamental reform of the entire care system will still be urgently required. We call on all the political parties to set out definitive plans for reforming the system ahead of the next general election."
One effective way of meeting care costs is to take out an equity release plan, through which an income can be generated using value stored in property.
Posted by Claire Ford
