What's right: cash for the homeless

ARA City Radio

Researchers in the UK are launching the country's first major trials to determine whether giving homeless people cash is a more effective way to reduce poverty than traditional forms of assistance. King's College London (KCL), in collaboration with the homelessness charity Greater Change, will recruit 360 participants across England and Wales. Half will receive help from frontline charities, while the other half will benefit from additional support provided by Greater Change, which will cover specific costs like rent deposits, debts, work equipment, and clothing. The study aims to explore when and for whom cash transfers are most effective, as well as the optimal amounts needed to make a meaningful impact. This trial builds on the concept of cash transfers, which started in Mexico in 1997 and has since been used globally. While most evidence comes from low- and middle-income countries, studies in places like Canada have shown promising results. For example, a 2023 study in Vancouver found that giving CA$7,500 to 50 homeless individuals was more effective than sheltering them, saving CA$777 per person. While small-scale studies have been conducted in the UK, including one in 2012 with 12 homeless participants, this new research is believed to be the first large-scale effort to test cash transfers for homelessness in the country.