Paper offering a critique of the New Deal scheme for the unemployed in the UK. It argues that the policy can be made more effective if the structure of the welfare-to-work system is changed to more closely reflect economic realities. It recommends aligning the institutions of the welfare-to-work system with the needs of employers and the disadvantaged which should have the effect of providing better jobs for the low-skilled and better workers for the private sector. A number of case studies of programmes which offer welfare claimants opportunities for self-sufficiency are included to support this argument.