Institutions, at state and local level, have been perceived as a mechanism of supporting the vulnerable within society. The processes of globalisation within an economic, political and social context have played a fundamental role in institutions. The 'State' that administers institutions has experienced involvement and adjustment by central government's policy of privatisation and deregulation. The aim of this paper is to critically explore the current debates on institutions within British society. We frame the debates within Foucault's notion of 'governmentality', which highlights how government provides governance of 'action at a distance' in order to detract blame from government and its policies and place this blame onto individuals and communities themselves (1978, p. 33).