Freedom and wellbeing are enduring societal aspirations, yet they are often assumed to be in conflict. Within the relevant scholarship, two influential frameworks have emerged as leading efforts to reconcile these values: the capability approach and libertarian paternalism. Beyond academia, these frameworks have proven to be influential in practice, informing public policy the world over. While both seek to promote liberty and welfare, a closer examination of their treatment of these values reveals differing interpretations of these values, each displaying advantages but also limitations, particularly if the project is to address freedom and wellbeing in a comprehensive manner. What is more, this scrutiny also shows that rather than competitors, these approaches are complementary. Although their combination in and of itself can prove insightful, the scope can be further improved to provide a more encompassing and nuanced proposal. Liberal Welfarism is the result of such undertaking. As an approach to governance, liberal welfarism seeks to offer a richer account of human agency that harnesses the advantages of both perspectives and addresses their individual as well as joint limitations, leading to significant implications for politics and policy.