British public policy has recently pioneered many initiatives in the introd
uction of market principles to public services. However, within the welfare
state arena these have usually had to compromise with existing concepts of
citizenship, and sometimes also with community - which need to be distingu
ished from both. The article considers some of the effects of this process
within the specific field of education policy. It finds some negative conse
quences, summarized under the headings of distortion, degradation and resid
ualization, but also finds evidence of interesting and promising syntheses,
as well as some new paradoxes.