The analytic framework used here to study welfare state change builds upon the distinction of two fundamentally opposed logics of social exchange: the logic of reciprocity and of solidarity. The approach enables to assess the complexity and ambivalence of policy change in advanced welfare states. Using recent social policy reform in Germany as an illustration of the analytical capacity of our approach, it is shown that change can be detected in two different dimensions. One type of change is in the overall mix between reciprocity-based insurance and solidarity-based assistance programmes which makes up the specific profile of a national welfare regime. Another type is in the balance between elements of reciprocity and solidarity within social insurance schemes. This approach can be replicated with any of the developed welfare states of the OECD world.