This paper seeks to develop a conceptual framework and criteria for considering future options for social policy. The present international debate about the future of the Welfare State, it is argued, often conflates and therefore confuses different reasons for wanting to adapt policy to a new economic environment. We have to be clear whether the aim of policy is to reduce public expenditure by privatising the costs of welfare, or whether it is to cut the total costs of social spending : the two aims cannot be equated. Similarly, we have to clear whether the aim of policy is to decentralise in order to reduce bureaucracy or to diffuse responsibility for inadequacies in an age of austerity. The paper explores the nature of the trade-offs betw...