This chapter focuses on T. H. Marshall's discussion of social citizenship and equality on the one hand, and to the recent discussion of the transformation of the welfare state and neo-liberalism on the other hand. It analyses the neo-liberal opposition to the welfare state and discuss neo-liberal alternative perspectives. The chapter then provides recent discussion of an alleged conversion of welfare thinking in liberal circles in the 1930s and clarifies the difference between social liberalism and neo-liberalism, or left-leaning and right-leaning revisions of liberalism. Further, it discusses recent welfare state reforms with an eye to what is called the 'new norm of secured market citizenship'. Finally, the chapter provides a brief discussion of a new research agenda on neo-liberalism and welfare. T. H. Marshall demonstrated that the development of capitalism was in fact dependent on the progress of contractual rights to overcome the infringement of status on economic activities and livelihood.