With the creation of the Social Exclusion Unit (SEU), the new Labour government signalled its concern with the problems of social exclusion. Unveiled as an innovative unit with a dynamic cross-departmental and holistic approach, the SEU quickly failed to meet the hopes of its supporters. Poorly resourced, passively supported by the prime minister, and ignoring the extensive experience of EU anti-exclusion policy, the SEU appears doomed to stagnate. However, if it was able to link to and learn from EU social policy, it could provide itself with a broader power base, more coherent policy approach, and strengthen ‘Social Europe’ as well.