A major UK trial will explore whether cash transfers are a more effective way of reducing homelessness than traditional assistance.
Led by King’s College London (KCL) and the charity Greater Change, the study will recruit 360 people across England and Wales. Half will continue receiving help from charities, while the other half will receive cash-based support for essential items like rent deposits and work equipment. The trial, funded by the government, aims to determine when and for whom cash transfers are effective.
Cash transfer programs have been used globally, with studies in countries like Mexico and Canada showing positive results. In Vancouver, giving CA$7,500 to 50 homeless individuals proved more effective than sheltering them. However, most evidence comes from low-income countries, and there is public concern about misuse of funds.
Greater Change, which has supported 1,300 homeless people in London and Essex over six years, claims an average saving of £35,000 in public spending per person helped. The charity’s success with former prisoners, who are at high risk of homelessness and reoffending, has shown promising results, with fewer than 9% reoffending within a year. This study will test whether their approach works on a larger scale and with more entrenched cases.
