Ireland has a relatively low rate of social expenditure for a variety of historical reasons, including the influence of the British welfare model. Social expenditure refers not just to social welfare payments or income support, but also to expenditure on other social areas such as health and education. In considering how the social welfare system might be reshaped to meet new challenges and further reduce poverty there are a number of important considerations. These include issues such as the following: How are the tax and welfare systems structured and how do they interact? What are the material and social needs of people living in poverty and how can these best be met? What types of service provision will promote both economic and social objectives? How can the quality of life for welfare recipients be improved and new opportunities opened up for them? Some of these questions are addressed in this report.