In the United States, a major reform of the welfare system has dramatically reduced the number of sole parents claiming benefits, with most former claimants now in employment. The author describes what welfare means in America, the background problem of poverty, how and why work requirements have become progressively more demanding, and consequences to date of welfare reform. He then considers whether some of the lessons learned in America might be applied in Australia, noting that despite the differences between the two countries, the Australian government is now moving in the same general direction as that taken in America, and suggesting that it is doing so for a very good reason. There is a need to raise work levels and limit dependency in Australia, just as there was in America, states the author. He argues the 'need to be more demanding than the Welfare Reform Reference Group's proposals seem to be'.