Abstract
This article argues for the centrality of the concept of social identity in contemporary analyses of social policy. It attempts to transcend arguments for or against postmodernism and argues that debates about ‘identity and difference’, when combined with an analysis of social relations, need not undermine a focus on structural inequalities and should be at the heart of theoretical considerations in social policy. It suggests that the concept of social identity is still poorly understood in recent debates and goes on to outline a provisional theory which distinguishes between ontological and categorical identity. Such a discussion, it is argued, may help suggest ways in which the role of social policy in the process of identity formation may be better understood.