This article critically examines the consequences of the neoliberal reorganisation of the welfare state for social work in Sweden in a time of increasing poverty, marginalisation and social problems. The retreat of the welfare state from its traditional obligations has resulted in the emergence of many voluntary and private actors in the Swedish ‘care market’, driving social work to authoritative action of social control and engagement in charitable activities. Based on a review of recent events indicating that municipal social work is in crisis, it is shown that critical voices are reacting against the increasing shortcomings of the welfare state, including municipal social work practices. It is argued that the pursuit of rights-based social work is urgent and that social work should be engaged in raising critical questions influencing public debate in order to counteract the increasing neoliberal dissolution of the Swedish welfare state and social work, which has led to increasing inequalities and injustices.