Mark Littlewood appears on BBC Radio 5 Live with Stephen Nolan
The report recommended a £35,000 cap on social care bills, after which the state would take over. The government, however, has announced a decision to set the cap at £75,000.
Mark Littlewood argued that there should be no cap on what users of social care should pay as it is unfair for younger generations to foot the bill. This is particularly unfair when wealthy users of the social care system do not have to pay above this £75,000 cap but younger working class generations pay for this through taxes and National Insurance.
The “pay-in” through National Insurance and tax doesn’t cover the “pay-out” made by the government for social care, pensions and healthcare and younger generations are forced to pay this difference.
“We have had government after government that has essentially taxed at about ‘x’ and promised ‘2x’ back and if you do that then you run out of cash,” argued Mark Littlewood.
Mr Littlewood went on to describe this financial black hole as “essentially a Ponzi scheme”.
“National insurance was initially designed to provide subsistence standards of living for those who had lost their jobs suddenly. It is now effectively an income tax. The contributory principle has been almost entirely removed and as I say, if any company had run an insurance system based on this the directors would be facing prison.”
Listen to the full programme here. Segment starts at 17.46.