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This paper discusses the benefits and the challenges of running a specialist psychoanalytic project in the community in the current economic and political climate. As the founder and clinical lead of the Psychosis Therapy Project, an Inner London service for people who experience psychosis, the author reflects on the pitfalls currently facing the psychoanalytic treatment of psychosis and exposes the ideological violence underlying the dominant model of recovery and rehabilitation in mental health care. From her frontline perspective, she recounts the devastating impact of social exclusion and discrimination on the welfare of those living with severe mental illness.