This chapter discusses how the current welfare system caters for persons with mental health problems and especially, whether the various measures and support the system offers ensure both a speedy return to work and adequate income security. It pays particular attention to the outcomes of recent sickness reforms for different population groups, namely those with a mental disorder and discusses the potential challenges still remaining despite the comprehensive reform. It also addresses the challenges facing caseworkers and general practitioners in assessing mental disorders and granting benefits on the grounds of mental ill-health. It focuses on the role of the public employment service and municipalities and the tools they have to deal with mental illness among the unemployed and social assistance recipients. Finally, the chapter examines the effectiveness of active labour market programmes to promote employment among those with mental disorders.