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This work is divided into three parts. Part One presents a brief analysis of the development of the welfare state and scoial policy, and links it to other aspects of societal development. Part Two focuses on the boundaries of the welfare state and its relationship to the current crisis of the British economy. Various perspectives on the economic and social limits of the welfare state and the possible linkages between social programme developments and the recent economic crisis have been critically reviewed. Part Three is concerned with the redistributive role of the welfare state in the UK. It considers various aspects of Public Finance, Economic Growth and Welfare Economics (ie the state and taxation, redistribution activities of the state and the determination and movement of wages).