Care homes will have to ensure they provide clear and accurate information regarding the cost of their services following a report by the Office of Fair Training (OFT).
A new government consultation on the transparency of care home price information will take place after an OFT report released earlier this year indicated that regulation was needed.
Announced by the care services minister Liam Byrne, the consultation aims to provide clear guidance for care providers on when, where and how they should disclose price information.
Care home workers, residents and families will be given a chance to express their views on the matter, as the government looks to remove any ambiguity.
"I want to ensure dignity and choice for our older people by providing clear information on care home prices and the support to live securely," explained Mr Byrne.
"I want to make it as easy as possible for care homes to provide the information that consumers need on prices, and would encourage care homes to contribute to the consultation."
The final proposals are expected to clarify that care homes must inform potential residents of the cost before any agreement is carried out, while providers will have around three months to introduce the changes.