Drawing from the theoretical and empirical results of a European research project, this paper tentatively elaborates a post-neoliberal framework for social policy and welfare reform. We argue that for moving beyond neoliberalism it is not sufficient to just increase the generosity of social policies: what is also needed is ‘social empowerment’, i.e. processes of democratization of social policymaking that effectively redistribute power in society, making welfare institutions increasingly accountable and responsive to citizens, including marginalized ones. Building on reflections and learnings emerging from our work in the research project, we show that a capability and human rights informed participatory action research involving civil society organizations, marginalized citizens and academic researchers, can offer potential pathways forward to advance a post-neoliberal social policy.