diff --git a/spring-batch-core/src/main/java/org/springframework/batch/core/scope/StepScope.java b/spring-batch-core/src/main/java/org/springframework/batch/core/scope/StepScope.java
index ff02ce18f..8dde3ca72 100644
--- a/spring-batch-core/src/main/java/org/springframework/batch/core/scope/StepScope.java
+++ b/spring-batch-core/src/main/java/org/springframework/batch/core/scope/StepScope.java
@@ -103,7 +103,7 @@ public class StepScope implements Scope, BeanFactoryPostProcessor, Ordered {
 
 	/**
 	 * Flag to indicate that proxies should use dynamic subclassing. This allows
-	 * classes with no interface to be proxied.  Defaults to false.
+	 * classes with no interface to be proxied. Defaults to false.
 	 * 
 	 * @param proxyTargetClass set to true to have proxies created using dynamic
 	 * subclasses
@@ -196,14 +196,15 @@ public class StepScope implements Scope, BeanFactoryPostProcessor, Ordered {
 				"BeanFactory was not a BeanDefinitionRegistry, so StepScope cannot be used.");
 		BeanDefinitionRegistry registry = (BeanDefinitionRegistry) beanFactory;
 
-		Scopifier scopifier = new Scopifier(registry, name, proxyTargetClass);
-
 		for (String beanName : beanFactory.getBeanDefinitionNames()) {
 			BeanDefinition definition = beanFactory.getBeanDefinition(beanName);
 			// Replace this or any of its inner beans with scoped proxy if it
 			// has this scope
+			boolean scoped = name.equals(definition.getScope());
+			Scopifier scopifier = new Scopifier(registry, name, proxyTargetClass, scoped);
 			scopifier.visitBeanDefinition(definition);
-			if (name.equals(definition.getScope())) {
+			if (scoped) {
+				new ExpressionHider(name, scoped).visitBeanDefinition(definition);
 				createScopedProxy(beanName, definition, registry, proxyTargetClass);
 			}
 		}
@@ -267,7 +268,9 @@ public class StepScope implements Scope, BeanFactoryPostProcessor, Ordered {
 
 		private final String scope;
 
-		public Scopifier(BeanDefinitionRegistry registry, String scope, boolean proxyTargetClass) {
+		private final boolean scoped;
+
+		public Scopifier(BeanDefinitionRegistry registry, String scope, boolean proxyTargetClass, boolean scoped) {
 			super(new StringValueResolver() {
 				public String resolveStringValue(String value) {
 					return value;
@@ -276,32 +279,99 @@ public class StepScope implements Scope, BeanFactoryPostProcessor, Ordered {
 			this.registry = registry;
 			this.proxyTargetClass = proxyTargetClass;
 			this.scope = scope;
+			this.scoped = scoped;
 		}
 
 		@Override
 		protected Object resolveValue(Object value) {
+
+			BeanDefinition definition = null;
+			String beanName = null;
 			if (value instanceof BeanDefinition) {
-				BeanDefinition definition = (BeanDefinition) value;
-				if (scope.equals(definition.getScope())) {
-					String beanName = BeanDefinitionReaderUtils.generateBeanName(definition, registry);
-					// Exit here so that nested inner bean definitions are not
-					// analysed
-					return createScopedProxy(beanName, definition, registry, proxyTargetClass);
-				}
+				definition = (BeanDefinition) value;
+				beanName = BeanDefinitionReaderUtils.generateBeanName(definition, registry);
 			}
 			else if (value instanceof BeanDefinitionHolder) {
 				BeanDefinitionHolder holder = (BeanDefinitionHolder) value;
-				BeanDefinition definition = holder.getBeanDefinition();
-				if (scope.equals(definition.getScope())) {
+				definition = holder.getBeanDefinition();
+				beanName = holder.getBeanName();
+			}
+
+			if (definition != null) {
+				boolean nestedScoped = scope.equals(definition.getScope());
+				boolean scopeChangeRequiresProxy = !scoped && nestedScoped;
+				new ExpressionHider(scope, nestedScoped).visitBeanDefinition(definition);
+				if (scopeChangeRequiresProxy) {
 					// Exit here so that nested inner bean definitions are not
 					// analysed
-					return createScopedProxy(holder.getBeanName(), definition, registry, proxyTargetClass);
+					return createScopedProxy(beanName, definition, registry, proxyTargetClass);				
+				}
+			}
+
+			// Nested inner bean definitions are recursively analysed here
+			value = super.resolveValue(value);
+			return value;
+
+		}
+
+	}
+
+	/**
+	 * Helper class to scan a bean definition hierarchy and hide placeholders
+	 * from Spring EL.
+	 * 
+	 * @author Dave Syer
+	 * 
+	 */
+	private static class ExpressionHider extends BeanDefinitionVisitor {
+
+		private static final String PLACEHOLDER_PREFIX = "#{";
+
+		private static final String PLACEHOLDER_SUFFIX = "}";
+
+		private static final String REPLACEMENT_PREFIX = "%{";
+
+		private final String scope;
+
+		private final boolean scoped;
+
+		private ExpressionHider(String scope, final boolean scoped) {
+			super(new StringValueResolver() {
+				public String resolveStringValue(String value) {
+					if (scoped && value.contains(PLACEHOLDER_PREFIX) && value.contains(PLACEHOLDER_SUFFIX)) {
+						value = value.replace(PLACEHOLDER_PREFIX, REPLACEMENT_PREFIX);
+					}
+					return value;
+				}
+			});
+			this.scope = scope;
+			this.scoped = scoped;
+		}
+
+		@Override
+		protected Object resolveValue(Object value) {
+			BeanDefinition definition = null;
+			if (value instanceof BeanDefinition) {
+				definition = (BeanDefinition) value;
+			}
+			else if (value instanceof BeanDefinitionHolder) {
+				BeanDefinitionHolder holder = (BeanDefinitionHolder) value;
+				definition = holder.getBeanDefinition();
+			}
+			if (definition != null) {
+				boolean scopeChange = !scope.equals(definition.getScope());
+				if (scopeChange) {
+					new ExpressionHider(definition.getScope(), !scoped).visitBeanDefinition(definition);
+					// Exit here so that nested inner bean definitions are not
+					// analysed by both vistors
+					return value;
 				}
 			}
 			// Nested inner bean definitions are recursively analysed here
 			value = super.resolveValue(value);
 			return value;
 		}
+
 	}
 
 }
diff --git a/spring-batch-core/src/main/java/org/springframework/batch/core/scope/util/PlaceholderTargetSource.java b/spring-batch-core/src/main/java/org/springframework/batch/core/scope/util/PlaceholderTargetSource.java
index d4a750196..451695fac 100644
--- a/spring-batch-core/src/main/java/org/springframework/batch/core/scope/util/PlaceholderTargetSource.java
+++ b/spring-batch-core/src/main/java/org/springframework/batch/core/scope/util/PlaceholderTargetSource.java
@@ -57,7 +57,7 @@ public class PlaceholderTargetSource extends SimpleBeanTargetSource implements I
 	/**
 	 * Key for placeholders to be replaced from the properties provided.
 	 */
-	private static final String PLACEHOLDER_PREFIX = "#{";
+	private static final String PLACEHOLDER_PREFIX = "%{";
 
 	private static final String PLACEHOLDER_SUFFIX = "}";
 
diff --git a/spring-batch-core/src/test/java/org/springframework/batch/core/scope/util/PlaceholderTargetSourceErrorTests.java b/spring-batch-core/src/test/java/org/springframework/batch/core/scope/util/PlaceholderTargetSourceErrorTests.java
index 316bab2db..619e8b3bd 100644
--- a/spring-batch-core/src/test/java/org/springframework/batch/core/scope/util/PlaceholderTargetSourceErrorTests.java
+++ b/spring-batch-core/src/test/java/org/springframework/batch/core/scope/util/PlaceholderTargetSourceErrorTests.java
@@ -68,26 +68,26 @@ public class PlaceholderTargetSourceErrorTests extends ContextFactorySupport {
 
 	@Test
 	public void testPartialReplaceSunnyDay() throws Exception {
-		Node target = (Node) createValue("name", "#{foo}-bar").getTarget();
+		Node target = (Node) createValue("name", "%{foo}-bar").getTarget();
 		assertEquals("bar-bar", target.getName());
 	}
 
 	@Test
 	public void testPartialReplaceMissingProperty() throws Exception {
-		Node target = (Node) createValue("name", "#{garbage}-bar").getTarget();
-		assertEquals("#{garbage}-bar", target.getName());
+		Node target = (Node) createValue("name", "%{garbage}-bar").getTarget();
+		assertEquals("%{garbage}-bar", target.getName());
 	}
 
 	@Test
 	public void testFullReplaceSunnyDay() throws Exception {
-		Node target = (Node) createValue("name", "#{foo}").getTarget();
+		Node target = (Node) createValue("name", "%{foo}").getTarget();
 		assertEquals("bar", target.getName());
 	}
 
 	@Test
 	public void testFullReplaceMissingProperty() throws Exception {
 		try {
-			Node target = (Node) createValue("name", "#{garbage}").getTarget();
+			Node target = (Node) createValue("name", "%{garbage}").getTarget();
 			assertEquals("bar", target.getName());
 			fail("Expected IllegalStateException");
 		}
@@ -99,26 +99,26 @@ public class PlaceholderTargetSourceErrorTests extends ContextFactorySupport {
 
 	@Test
 	public void testPartialReplaceIntegerToString() throws Exception {
-		Node target = (Node) createValue("name", "foo-#{integer}").getTarget();
+		Node target = (Node) createValue("name", "foo-%{integer}").getTarget();
 		assertEquals("foo-4321", target.getName());
 	}
 
 	@Test
 	public void testFullReplaceIntegerToString() throws Exception {
-		Node target = (Node) createValue("name", "#{integer}").getTarget();
+		Node target = (Node) createValue("name", "%{integer}").getTarget();
 		assertEquals("4321", target.getName());
 	}
 
 	@Test
 	public void testFullReplaceIntegerToLong() throws Exception {
-		Node target = (Node) createValue("value", "#{integer}").getTarget();
+		Node target = (Node) createValue("value", "%{integer}").getTarget();
 		assertEquals(4321L, target.getValue());
 	}
 
 	@Test
 	public void testFullReplaceIntegerToNode() throws Exception {
 		try {
-			Node target = (Node) createValue("parent", "#{integer}").getTarget();
+			Node target = (Node) createValue("parent", "%{integer}").getTarget();
 			assertEquals("4321", target.getParent());
 			fail("Expected IllegalArgumentException");
 		}
diff --git a/spring-batch-core/src/test/resources/org/springframework/batch/core/scope/util/AsyncPlaceholderTargetSourceTests-context.xml b/spring-batch-core/src/test/resources/org/springframework/batch/core/scope/util/AsyncPlaceholderTargetSourceTests-context.xml
index 8416f6b4b..939c63553 100644
--- a/spring-batch-core/src/test/resources/org/springframework/batch/core/scope/util/AsyncPlaceholderTargetSourceTests-context.xml
+++ b/spring-batch-core/src/test/resources/org/springframework/batch/core/scope/util/AsyncPlaceholderTargetSourceTests-context.xml
@@ -19,7 +19,7 @@
 
 	<bean id="simpleTarget"
 		class="org.springframework.batch.core.scope.util.AsyncPlaceholderTargetSourceTests$Foo" autowire-candidate="false">
-		<property name="name" value="#{attributes[foo]}" />
+		<property name="name" value="%{attributes[foo]}" />
 	</bean>
 
 	<bean id="context"
diff --git a/spring-batch-core/src/test/resources/org/springframework/batch/core/scope/util/MultipleContextPlaceholderTargetSourceTests-context.xml b/spring-batch-core/src/test/resources/org/springframework/batch/core/scope/util/MultipleContextPlaceholderTargetSourceTests-context.xml
index 10005b457..61c0e9ab4 100644
--- a/spring-batch-core/src/test/resources/org/springframework/batch/core/scope/util/MultipleContextPlaceholderTargetSourceTests-context.xml
+++ b/spring-batch-core/src/test/resources/org/springframework/batch/core/scope/util/MultipleContextPlaceholderTargetSourceTests-context.xml
@@ -27,11 +27,11 @@
 	</bean>
 
 	<bean id="simpleTarget" class="org.springframework.batch.core.scope.util.MultipleContextPlaceholderTargetSourceTests$TestBean">
-		<property name="name" value="#{attributes[foo]}" />
+		<property name="name" value="%{attributes[foo]}" />
 	</bean>
 
 	<bean id="listTarget" class="org.springframework.batch.core.scope.util.MultipleContextPlaceholderTargetSourceTests$TestBean">
-		<property name="names" value="#{attributes[foo]}" />
+		<property name="names" value="%{attributes[foo]}" />
 	</bean>
 
 	<bean id="context"
diff --git a/spring-batch-core/src/test/resources/org/springframework/batch/core/scope/util/PlaceholderTargetSourceTests-context.xml b/spring-batch-core/src/test/resources/org/springframework/batch/core/scope/util/PlaceholderTargetSourceTests-context.xml
index 7e39f486e..bf9e8c67a 100644
--- a/spring-batch-core/src/test/resources/org/springframework/batch/core/scope/util/PlaceholderTargetSourceTests-context.xml
+++ b/spring-batch-core/src/test/resources/org/springframework/batch/core/scope/util/PlaceholderTargetSourceTests-context.xml
@@ -90,37 +90,37 @@
 	<bean id="simpleTarget"
 		class="org.springframework.batch.core.scope.util.PlaceholderTargetSourceTests$Foo"
 		lazy-init="true">
-		<property name="name" value="#{map['foo.foo']}" />
+		<property name="name" value="%{map['foo.foo']}" />
 	</bean>
 
 	<bean id="compoundTarget"
 		class="org.springframework.batch.core.scope.util.PlaceholderTargetSourceTests$Foo"
 		lazy-init="true">
-		<property name="name" value="#{foo}-bar" />
+		<property name="name" value="%{foo}-bar" />
 	</bean>
 
 	<bean id="refTarget"
 		class="org.springframework.batch.core.scope.util.PlaceholderTargetSourceTests$Foo"
 		lazy-init="true">
-		<property name="parent" ref="#{foo}" />
+		<property name="parent" ref="%{foo}" />
 	</bean>
 
 	<bean id="valueTarget"
 		class="org.springframework.batch.core.scope.util.PlaceholderTargetSourceTests$Foo"
 		lazy-init="true">
-		<property name="parent" value="#{parent}" />
+		<property name="parent" value="%{parent}" />
 	</bean>
 
 	<bean id="withLongTarget"
 		class="org.springframework.batch.core.scope.util.PlaceholderTargetSourceTests$Foo"
 		lazy-init="true">
-		<property name="name" value="bar-#{long}" />
+		<property name="name" value="bar-%{long}" />
 	</bean>
 
 	<bean id="withIntegerTarget"
 		class="org.springframework.batch.core.scope.util.PlaceholderTargetSourceTests$Foo"
 		lazy-init="true">
-		<property name="name" value="bar-#{integer}" />
+		<property name="name" value="bar-%{integer}" />
 	</bean>
 
 	<bean id="withListTarget"
@@ -128,9 +128,9 @@
 		lazy-init="true">
 		<property name="list">
 			<list>
-				<value>#{foo}</value>
-				<value>foo-#{integer}</value>
-				<value>bar-#{integer}</value>
+				<value>%{foo}</value>
+				<value>foo-%{integer}</value>
+				<value>bar-%{integer}</value>
 			</list>
 		</property>
 	</bean>
@@ -138,25 +138,25 @@
 	<bean id="withMultipleTarget"
 		class="org.springframework.batch.core.scope.util.PlaceholderTargetSourceTests$Foo"
 		lazy-init="true">
-		<property name="name" value="bar-#{integer}-#{integer}" />
+		<property name="name" value="bar-%{integer}-%{integer}" />
 	</bean>
 
 	<bean id="withMultipleStartAndEndTarget"
 		class="org.springframework.batch.core.scope.util.PlaceholderTargetSourceTests$Foo"
 		lazy-init="true">
-		<property name="name" value="#{integer}-#{integer}" />
+		<property name="name" value="%{integer}-%{integer}" />
 	</bean>
 
 	<bean id="withEmbeddedDateTarget"
 		class="org.springframework.batch.core.scope.util.PlaceholderTargetSourceTests$Foo"
 		lazy-init="true">
-		<property name="name" value="bar-#{date}" />
+		<property name="name" value="bar-%{date}" />
 	</bean>
 
 	<bean id="withDateTarget"
 		class="org.springframework.batch.core.scope.util.PlaceholderTargetSourceTests$Foo"
 		lazy-init="true">
-		<property name="date" value="#{date}" />
+		<property name="date" value="%{date}" />
 	</bean>
 
 	<bean class="org.springframework.beans.factory.config.CustomEditorConfigurer">
diff --git a/spring-batch-core/src/test/resources/org/springframework/batch/core/scope/util/SimplePlaceholderTargetSourceTests-context.xml b/spring-batch-core/src/test/resources/org/springframework/batch/core/scope/util/SimplePlaceholderTargetSourceTests-context.xml
index 041ca0b77..593bb3c30 100644
--- a/spring-batch-core/src/test/resources/org/springframework/batch/core/scope/util/SimplePlaceholderTargetSourceTests-context.xml
+++ b/spring-batch-core/src/test/resources/org/springframework/batch/core/scope/util/SimplePlaceholderTargetSourceTests-context.xml
@@ -21,7 +21,7 @@
 	<bean id="simpleTarget"
 		class="org.springframework.batch.core.scope.util.SimplePlaceholderTargetSourceTests$Foo"
 		lazy-init="true" autowire-candidate="false">
-		<property name="name" value="#{foo}" />
+		<property name="name" value="%{foo}" />
 	</bean>
 
 	<bean id="context"