Peers voted by 305 to 175 to support a Liberal Democrat amendment to the Bill that would ensure health and social care providers are exempt from the hike.

Professor Martin Green, chief executive of Care England, said: ‘This is a huge moment for the social care sector and a testament to the relentless campaigning from care providers, local trade associations, national bodies, the Care Provider Alliance and Providers Unite.

‘For too long, social care has been overlooked, but yesterday's vote proves that when we come together, our voices can no longer be ignored. This exemption would be a vital lifeline for thousands of providers already on the brink, and will recognise the essential role social care plays in our society.'

‘But let me be clear - this fight is not over. The Bill now returns to the House of Commons, and it is up to the secretary of state, the Prime Minister, and every MP to decide whether they will stand with social care or allow a sector that millions rely on to collapse under the weight of unsustainable costs. They must be on the right side of history and act now to protect the future of care in this country.'