This essay will examine whether the welfare state has eliminated poverty. It will examine what poverty is and how the definition varies from society to society. The essay will examine the objectives of the welfare state from its conception and how it has changed to the present day. The welfare state analyzed is that of the United Kingdom. We will discuss the nature of the social democratic welfare state and liberal criticisms of the problems this type of state entails. We will look at recent changes to the welfare state and what the consequences of the changes might be. Recent statistics will then be examined to determine whether the welfare state has eradicated poverty. Poverty is a difficult condition to define because it is often used with different meanings by different people. The United Nations definition states that '...poverty is a denial of choice and opportunity, a violation of human dignity. It means a lack of basic skills to participate in society… often involves living in marginal or fragile environments, without access to clean water or sanitation” (United Nations statement, 1998). Poverty is generally divided into two types; absolute and relative. Absolute poverty can be defined in several ways but, regardless of the definition, it is generally accepted that it is in an intolerable situation that requires action to reverse (Schwartzman, 1997). Absolute poverty can be described as “a condition characterized by severe deprivation of basic human needs, including food, drinking water, sanitation, facilities, health, housing, education and information” (World Summit on Social Development, 1995) . The UN measures absolute poverty by the lack of two or more deprivations of basic human needs. The needs are; food, drink safely with... half of paper... will still leave more than 12 million people in poverty, although the indirect consequences of the reform could prove to offer further help to those living below the poverty line . in many ways the welfare state has succeeded in achieving a more just society at the most basic level. All citizens have the right to free education, healthcare and benefits when needed, which are the most basic needs. Liberals might argue that the welfare state has, in fact, worked too well in creating a society in which one can choose whether or not to work and still achieve a decent standard of living without contributing anything to the overall standard of society. Beyond this, it can be argued, the welfare state has failed. The United Kingdom is the fifth richest country in the world (www.worldsrichestcountries.com), but still struggles to lift a large percentage of its citizens out of poverty.