Explores the ideas that a group’s social capital is related to levels of social exclusion, together with the policy implication that social capital can be developed in order to counter exclusion. Analyses a school‐based research project which looks at the relationship of social capital to the well‐being of children and young people covering gender, ethnicity, age, trust and community. Concludes that Putnam’s widely used concept of social capital is problematic as it over‐emphasises “bridging, linking and bonding and neglects material, economic and political factors”. Suggests that Bourdieu’s concept is more useful.