People experiencing homelessness are to be given direct financial support as part of a pioneering UK trial.
The government-funded trial is inspired by similar schemes in Mexico and Canada, where cash transfers were shown to reduce the amount of time that people were homeless for, while saving the state money.
“At a time of severely strained public finances, we are keen to learn whether we can use money more effectively and more efficiently to tackle deep-rooted societal problems like homelessness,” said Michael Sanders, professor of public policy at King’s College London, which is leading the trial.
The UK pilot will recruit 360 people in England and Wales. Half will continue to receive their current level of support, while the other half will receive extra financial assistance, albeit not directly. The charity Greater Change will hold and spend money on behalf of participants to ensure that their benefits payments are uninterrupted.
The trial comes amid mounting evidence to suggest that giving money to those who need it is a surprisingly effective solution to poverty.
“Sometimes by trusting [people] to do the right thing, we can achieve greater impacts more cost effectively,” Prof Sanders told Positive News. “We hope that the findings can help shape government policy at the local and national level in the UK, as well as internationally.”
Image: Tom Parsons
