The current Greek crisis started off in 2009 as a fiscal crisis, soon turned into a sovereign debt crisis, then mutated into a full-blown recession, unprecedented in depth and duration. The article offers an early analysis of the impact of the crisis on the labour market and the distribution of incomes, showing that the need for social protection is now much greater than ever before. It then critically reviews social policy responses in a context of both cuts to social spending and reforms in social programmes, arguing that the Greek welfare state is poorly equipped to meet the challenge. The article concludes by discussing prospects for social policy in an era of permanent austerity.