The ‘Welfare Market’ and the Flexible New Deal: Lessons from Other Countries

Recent British welfare reform involves the creation of a managed welfare market for the delivery of employment programmes. This article critically reviews evidence on the development and impacts of such markets in Australia, the USA and the Netherlands. It considers the emergence of problems with ‘creaming’ and ‘parking’ of participants and the challenges that ‘market makers’ must meet if they are to secure anticipated improvements in service delivery and outcomes.