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This paper analyses the characteristics of the ongoing institutional change occurring in education and social policy in the Netherlands in order to achieve the idea of lifelong learning in a knowledge economy. The author begins with an overview of the developments over the past decade with their theoretical and political backgrounds. During these years, the call for lifelong learning opportunities and flexible learning paths has been restricted by attempts to control spending and make efficient use of public resources. A voucher experiment was developed to enhance the flexibility of initial education. The SME pathway introduced a dual learning opportunity where students spend the last part of their four-year program working in a small and medium sized enterprise (SME). Adult learning arrangements for the re-integration of poorly skilled adult immigrants are also outlined. Basic skills training is provided for this group of adults in Regional Training Centers.