The new coalition government has released its Programme for Government, which promises that dementia research will get priority in the health research and development budget.
On hearing the news, the Alzheimer's Research Trust praised the "groundbreaking" programme, saying it offered new hope to the hundreds of thousands of people in the UK living with dementia.
The charity claims that the UK has some of the world's finest dementia scientists, but they have suffered from underfunding for years.
Rebecca Wood, Chief Executive of the Alzheimer’s Research Trust said: "Dementia is the greatest medical challenge of our time, costing our economy £23 billion each year.
"Through this groundbreaking pledge, the new government has recognised the urgency of Britain’s dementia crisis."
Meanwhile, the Alzheimer's Society welcomed the appointment of Liberal Democrat MP Paul Burstow as minister for care services.
The dementia charity said Mr Burstow had worked "tirelessly" for social care reform, championing the right of people with dementia.
Read more about Barchester's dementia care homes.