This article develops notions of transgender citizenship in relation to existing approaches to citizenship, including liberalism, neoliberalism and communitarianism. Changes relating to New Labour's Third Way provide some support for transgender citizenship. However, these are limited because New Labour has yet to fully support gender diversity, to embrace different forms of morality, to tackle underlying structural inequalities and to develop sufficiently strong mechanisms for participation. The article argues that a robust participatory democracy is necessary for ensuring transgender political participation and social inclusion. Full transgender citizenship would lead to fundamental changes in the social organization of gender and social policy positions concerning gender.