Here we examine New Labour's education policy concerning social justice and the organisation of educational provision with reference to social capital as policy vocabulary. The central focus is on policy discourses and practices in relation to networking between schools and other partners. We identify three policy phases for reducing inequalities and social exclusion, while supporting human capital formation: (1) EAZs in the late 1990s; (2) refocusing on specialisation and beaconisation, 2000-2003; and (3) transformations signalled by the diversity and choice agenda of the White Paper 2005, academies and trusts. We detect a drift in policy targets and aspirations from the early idealised "new and exciting" kinds of educational participation and democracy, returning to more traditional professionalist arrangements in specialisation/beaconisation, and currently moving in the direction of post-democratic governance in the academies programme, while doing little to challenge processes of stratification of educational institutions or outcomes. We develop the argument concerning the "post-democratic" turn in education policy by exploring the possibilities and limitations of policy-making which deploys social capital vocabulary and mechanisms, ending with the paradox of social capital as a theory of democracy articulating with "post-democratic" educational structures. (Contains 2 tables, 3 figures and 5 notes.)