The challenge of meeting the growing cost of welfare is one of the most pressing issues facing governments of our time. Glennerster's authoritative Understanding the cost of welfare assesses what welfare costs and how it is funded sector-by-sector. The book is written in a clear, accessible style, ideally suited to both teaching and study, and the general reader. This substantially revised third edition includes: * Discussion of the many funding issues now facing welfare states, such as demographic change, tax resistance, slow growth and austerity programmes * The theory and practice of devolved tax and budgetary responsibilities between UK nations and in comparison with other countries * New chapters on pensions and post-16 education * More regular and extensive comparative analysis Divided into 3 sections, covering Principles, Service funding, and The Future, the book Includes questions for discussion and suggestions for further reading, making it an easy-to-use, essential resource for both undergraduate and post-graduate students of Social Policy, Sociology, Politics and Public Administration.