More money from the government and lower costs for care fee plans will improve the prospect of living in a care home for some of Britain's elderly.

But campaigners say too many are still unsure what financial help they are entitled to.

A hefty £67 million will be pumped into thousands of care homes across England to improve facilities, allow residents greater privacy and encourage them to exercise more, the government said in May.

The cash injection is part of the Department of Health's Dignity in Care' campaign. Homes are expected to use the money to upgrade bedrooms, bathrooms and dining rooms, spruce up gardens or outside spaces, and provide access to the internet.

"I know how important it is for people living in care homes to have an environment they are happy in and that they are proud to call home," said care services minister Ivan Lewis. "By distributing this funding to almost 7,000 care homes throughout England we are able to improve the lives of tens of thousands of people and their families."

Charity Help the Aged welcomes the move, but urges action to improve staff status. "Improving the physical environment is only one piece of the jigsaw," says Annie Stevenson, the charity's senior policy adviser. "It is just as crucial to recognise that investment in the care home sector workforce is also vital to lift its status and to improve morale and potential to meet future needs."

Help the Aged is also concerned that too many elderly people and their families are struggling to pay the high cost of living in a care home - fees have risen by 33 per cent in the past five years alone - and don't know what help they are entitled to. The charity is urging health and social care professionals to help get vital information to older people.

If you need a care home place and your savings are below the means tested limit of £21,000, you should be entitled to some financial support from your local authority (the figures differ slightly in Scotland and Wales). People with capital below £12,750 are entitled to the maximum level of support. And for those with complex medical needs, completely free care may be available from the National Health Service.

If you are relatively healthy, and your savings come to more than the government's upper limit, you will have to pay full fees for your care.

For some people, care fee payment plans can be a helpful way to meet these costs. They can provide a regular income to cover your care costs for the rest of your life, and are usually flexible enough to meet future changes such as fee increases or a shift in your care needs.

And the cost of care plans has fallen in recent years, according to research from NHFA, an adviser specialising in long-term care funding. A plan giving you £1,000 income per month, for instance, has fallen in the last two years by almost 5 per cent from £48,782 to £46,471.

"This is really a positive for older people needing care, and their families," says Philip Spiers, managing director of NHFA. "There has always been the emotional pull of, on the one hand, wanting to buy the best care possible but, on the other, not wishing to see an inheritance disappear. Combining advice on your full entitlement to State support with purchasing a care plan to meet the costs can be a solution that satisfies both."

Care fee plans are not suitable for everyone, so do seek the help of a specialist financial adviser who should look at your entitlement to state support as well as considering suitable financial plans to meet your care costs.

Make sure your adviser has the CF8 qualification - now a legal requirement for anyone giving advice on funding long-term care.