Increasing meritocracy has intensified negative perceptions of individuals in lower socioeconomic positions, especially welfare recipients, who are often viewed as incapable, lazy, or unmotivated. We conducted twenty-nine in-depth interviews with long-term social assistance recipients (SARs) in the Netherlands to explore their experiences with welfare stigmatisation. We used García-Lorenzo and colleagues’ (2022) typology to analyse SARs’ responses to stigmatisation. Surrounded by negative stereotypes, most participants internalised welfare stigma. Initially, many withdrew socially and engaged in harmful behaviours, but over time, their responses became less destructive. We identified four groups: individuals who are managing health, reorienting life, rebuilding life, or blaming the system. Overall, our findings suggest that social interventions should help SARs develop new, non-stigmatised identities to enhance their self-image and overall well-being. Given the widespread and negative consequences of welfare stigma, public, political, and media discourses should focus on addressing underlying societal issues rather than solely attributing problems to individuals.