Speaking at an event organised by leading think tank the Smith Institute on Wednesday morning, Sir Simon called for a proportion of national insurance revenue to be set aside to pay for adult social care.
He claimed there was a “natural link” between NI revenues and social care costs as well as the opportunity to make the change.
“The surplus in the National Insurance Fund has been growing over recent years, with the last published balance more than£20bn above the Government Actuary’s minimum requirement,” he told an audience of academics, civil servants and policy analysts.
Council tax revaluation 'painless when people move house'
He also called for council tax revaluation to be put back on the agenda, claiming it could be done painlessly by implementing it when people moved house.
Sir Simon also called for the deregulation of fees and charges, the abolition of council tax capping, and a push to increase the take-up of council tax benefit.
Also speaking at the event was former Treasury adviser Chris Wales, who called for local government to be reorganised into fewer, larger councils so that they could set the base rate of income tax at variable levels.