Theresa May has been warned by her Health Secretary that plans for a £100,000 care cap will cost billions and lead to significant tax rises, The Telegraph can reveal.

Matt Hancock has told the Prime Minister he is "concerned" that the cap, which he says could cost up to £3.4billion, is being included in a forthcoming green paper.

The cap would see people pay a maximum of £100,000 for their care over their lifetime, excluding the cost of accommodation.

In a letter to the Prime Minister this week he said it "confers a significant benefit to the well-off at the expense of the general taxpayer", adding that "raising taxes is likely to be the most promising choice to fund this".

His stark warning highlights the scale of the divisions at the highest level Government over its social care policy, the issue that nearly lost the Conservatives the last election.