Tory leader Michael Howard has promised a better life for Britain's pensioners with a package of measures including an end to the elderly selling up their homes to pay for residential care.

Mr Howard accused Labour of letting down old people and while campaigning in Northampton he said, "If you want to know about a family, look at how they treat their older relatives. And if you want to know about a country, look how it cares for older people. People deserve to be treated with dignity and respect in their retirement. But in Britain today too many pensioners are not shown the respect they deserve."

"We will end the situation where the elderly are forced to sell their homes, saying goodbye forever to their independence as they go into residential care. We will provide security to those who pay for the first three years of residential care by guaranteeing free long-term care after those three years, regardless of the value of their house or savings."

Mr Howard has also promised to cut bills for 3.8 million pensioner households using money saved from reducing government waste.

Pensioners over 65 would get their council tax bills cut by an average of £340 under the Conservative plan. Households where all members are over 65 would get a rebate covering half their bill, up to a maximum of £500.

Figures released by the party this weekend claim the typical single pensioner has seen 40% of the increase in their basic state pension taken back in higher council tax since 1997.

Mr Howard said the issue would be a top priority for a Tory government. "We think that older people in our country need dignity, respect and security," he said. "We owe them a great deal, many of them fought for the freedoms which we enjoy today."