He told the Commons science and technology committee: "Some might benefit from being monitored so that families know they are safe and secure."
While acknowledging the government would need to be sensitive to "avoid a 'Big brother' approach", he suggested the satellite technology - also used to track criminals - could have further applications.
While acknowledging the government would need to be sensitive to "avoid a 'Big brother' approach", he suggested the satellite technology - also used to track criminals - could have further applications.
"Satellites currently monitor the planet in a variety of different ways. I'm raising this as an issue for discussion," he told MPs on Wednesday.
"Are there other uses of technology that could benefit society?
"Are there other uses of technology that could benefit society?
"We've got an ageing population with many people frail and many suffering from dementia, including Alzheimer's.
"How can we get the balance right so that these people have the freedom to live their lives, to go out in the community and go shopping?"
Kate Jopling from Help the Aged gave the minister's suggestion a cautious welcome.
"Clearly at first glance these proposals may smack of the 'Big brother' state, but we shouldn't dismiss the potential of new technologies to afford dignity and opportunity to vulnerable older people," she said.
"Help the Aged wants to see more older people with dementia enabled to live as independently as possible in the community, and this might be a way of achieving this whilst minimising some of the risks.
"The key issue would of course be the involvement and consent of the individual, and their family and carers, to ensure that the technology means better care - not just care that's cheaper or more convenient."
Shami Chakrabarti, director of Liberty, also sounded a sceptical note. She said: "A debate about better care for the elderly is a good thing but technical gimmicks often provide cheap and quick fixes rather than dignified and possibly expensive care."
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