Learning Policy identifies for the first time a new area of social policy. The distinguishing feature of this new policy is that it integrates education and training with the economy in an unprecedented manner. This integration is undertaken as part of economic development alongside social policies contributing to the reforms of the welfare state. The evolution of such a policy is traced through five phases in England and Wales from the post-war settlement represented by the 1988 Education Act and the 1992 Further and Higher Education Act. In the latest phase of Learning Policy, the New Labour government is seen as moving further toward privatizing education and training at all levels at the same time as using a regionally differentiated education and training system for social control. In conclusion, an alternative direction for education and training is indicated.