This study examines options for the future development of the Irish welfare state, with a view to tackling low income and deprivation more effectively. The structure of Ireland’s welfare state is put in international context, and a review of demographic developments and prospects helps to clarify the nature of future challenges for the system. Policy issues arising for the main “vulnerable groups” identified in the National Action Plan for Social Inclusion are then considered in depth, as are issues of the spatial distribution of poverty. Finally, the potential impacts of alternative large-scale policy reform packages are explored, using SWITCH, the ESRI tax-benefit model.