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Under the Blair government, the education and training policy in the UK assumed a new weight of responsibility. Performing a key role in a range of social and economic policy areas, it was proclaimed as the 'Third Way'. In this paper, the author provides an overview of the main initiatives of the Blair government and examines the extent to which they reflect the principles of the Third Way. The initiatives are assessed and specific features of British economic and political life posing significant problems in implementing New Labour's version of the Third Way are highlighted. The verdict is that while there is considerable ambition and coherence in the educational strategy of the Blair government, the obstacles facing the government are also sizeable.