This paper critically examines claims of a new consensus on welfare an
d the end of the welfare state. We first review the concept of welfare
consensus, concentrating on the idea of welfare pluralism, in particu
lar the relatively neglected distinction between national minimum (bas
e) and extension ladder (superstructure). We then examine these concep
ts in the IGGOS under Conservative and New Labour governments. Importa
nt changes to welfare pluralism are noted. There have been changes in
the character of means-tests, with the national minimum replaced by a
series of residual minima, which represent fundamental changes to stru
ctural incentives governing the social division of welfare and work. T
he line between state and non-state provision has been blurred and the
re have been moves to achieve universalism in the private sector. It i
s possible to tentatively classify Labour's principles and fledgling p
olicies into three categories: essential continuity with the Conservat
ives, reversing Conservative policies and extending Conservative polic
ies. However, it is difficult to detect the degree of consensus becaus
e a new flexible language is beginning to pervade social policy, with
the result that the welfare state is being redefined, notably in areas
of full employment, citizenship and conditionality. It is possible to
detect, in our terms, moves towards turning Beveridge inside out and
from the ''Marshall'' towards the ''Beveridge'' welfare state. It is c
lear that the welfare state is being redefined, but reports of its dea
th have been much exaggerated.