This report argues that it is time for the welfare state to be transformed. The authors argue for a new structure which can gradually be built out of the existing one. They present ways in which this can be achieved despite the financial constraints which contributing individuals and Treasury officials will impose. As such, this report sets forward a clear and intellectually coherent alternative to the welfare state, together with the means which can be used to bring it about. It thus presents a bold challenge to the conventional welfare thinking which has so visibly and lamentably failed to achieve its objectives.