'Making work pay' is the keystone of New Labour's strategy to reduce welfar
e dependency, This strategy is especially directed at lone parents, through
increased financial support for childcare, a specific 'New Deal' and reduc
ed benefits for non-working lone parents. Reducing welfare dependency for l
one parents has several possible objectives; minimising welfare expenditure
s, maximising the employment rate, improving the socioeconomic status of wo
men, or improving conditions for their children. This article analyses the
implications of each of these objectives for policy design, using evidence
from other countries as well as the United Kingdom, and examines the intern
al coherence of New Labour's policy approach to lone parents and its cohere
nce with other policies on the family and on lifelong learning, The potenti
al effectiveness of 'making work pay' is examined through the findings of r
ecent literature, leading to arguments for a carer's allowance.