The reform of the funding for how people pay for social care was expected to start in 2017, but the care cap has been brought forward to 2016.
The announcement comes before Wednesday's budget is given, and included the flat tier pension, which will be introduced at the same time.
The chancellor has also announced that the lifetime cap will be reduced from £75,000 to £72,000.
It was originally advised by Andrew Dilnot as a £30,000 cap, so this reduction is not dramatic.
The care cap will be to cover the cost of social care and people would still have to pay for accommodation and food with minimal support. The intention of the cap is so that people who have saved their whole lives don't have to sell their house to pay for care when they are older.
Mr Osborne refused to confirm the rumours that he will also be announcing a voucher scheme to help working mothers with childcare.
Liz Kendall, shadow minister for care and older people, said that any cap above £50,000 would not “provide adequate protection” for people on low incomes, which are the figures given in the Dilnot Cap recommendations:
George Osborne is still failing older people and their families. Today's minor adjustments to the government's plan will still leave far too many selling their homes to pay for care.
We need a far bigger and bolder response to meet the needs of our ageing population: a genuinely integrated NHS and social care system which helps older people stay healthy and living independently in their own homes for as long as possible.
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