The government is to announce reforms to social care funding as a key part of its mid-term coalition relaunch this afternoon.

In a speech due to take place at 2.30pm, prime minister David Cameron and his deputy Nick Clegg will announce a series of policy reforms, including a commitment to support individuals with social care costs.

A statement published ahead of the announcement said there would be “reforms to provide dignity in old age”, including “an improved state pension that rewards saving, and more help with the costs of long-term care”.

The Sunday Times reported that the Treasury had agreed to fund a £75,000 cap on care costs – more than double the £35,000 recommended by the Dilnot commission.

However, a Downing Street spokesman said he did not expect figures to be announced today.

The Dilnot commission’s report, which proposed capping care costs, said the cap could be raised to £50,000, but warned that anything above this “could mean people with lower incomes and lower wealth would not receive adequate protection”.

Andy Burnham, Labour’s shadow health secretary, said in response to reports of the £75,000 cap: “If these reports are true, the government will have fallen far short of a fair solution to the care crisis. A cap on care bills of £75,000 per person, or £150,000 per couple, will not protect the home and life savings of an average family.”

Mr Cameron and Mr Clegg are also set to commit to an increase in house-building and support for childcare costs.

More to follow.