This chapter looks at the ability of the Dutch public employment service and the municipalities to deal with the high prevalence of mental illness among their clients. It looks successively at the main issues for the key client groups – unemployed people, sickness and disability beneficiaries and social assistance beneficiaries – with a particular focus on the activation support provided to clients with mental ill-health. The chapter also addresses the implications of the major reforms that are being implemented in the Netherlands: the continued shift of responsibilities over sickness management onto employers and the increasing role for municipalities in activating clients with the strongest labour market disadvantages.