The Tánaiste and Health Minister Mary Harney has promised that the threshold for nursing home subventions will be increased in next month's budget for the first time since 1993.
Ms Harney made the pledge in an address the annual conference of the Irish Nursing Homes Organisation in Dublin today.
She also promised to focus her attention in the coming months on care of the elderly, saying over-65s now accounted for 11% of Ireland's population.
The minister said she planned to increase inspections of both private and public nursing home and was considering the introduction of a new licensing scheme to improve standards.