In recent years successive British governments have implemented policies to promote employment opportunities for disabled people. The delivery of these programmes has been contracted out to a variety of public, private and third sector organisations who receive payment based on their performance. This chapter examines two major welfare-to-work programmes, the New Deal for Disabled People and Pathways to Work, and by applying the notions of adverse selection and moral hazard argues that those disabled people in the greatest need for support (because they are the furthest from the labour market) of are the least well served by the marketisation of disability employment programmes.