Multiple welfare states are re-emphasising the need for street-level bureaucrats’ (SLBs) discretion to stimulate responsive service provision. However, little is known about how SLBs with diverse backgrounds in inter-departmental settings deliberate what it means to use discretion well when different rules, eligibility criteria, and interpretations apply to a client. We address this gap by investigating the stories that participants of a Dutch policy experiment told each other to justify which clients should be granted a flexible interpretation of entitlement categories amid scarcity. We found that ‘caretakers’ used the ‘victim of circumstances’ and ‘good citizen’ plot-type to convince ‘service providers’ that the use of discretion was the right thing to do, whereas the latter used the ‘not needy enough’ or ‘the irresponsible citizen’ plot-type for contestation. Our analysis shows that storytelling helped SLBs to make sense of and bring cohesion to complex situations. Moreover, the analysis shows how stories can have a strong emotional appeal and create a sense of urgency to act collectively, yet can also create divisions and opposition among SLBs. As such, storytelling influences how SLBs think and feel about the client, themselves, and each other, and influences how discretion is used at the front-line of public policy.