Cash given to homeless people in UK's first major trial to reduce poverty | homeless

Researchers are carrying out the UK's first major scientific experiment to determine whether giving cash to homeless people is a more effective way to reduce poverty than traditional forms of help.

Poverty campaigners have long believed that cash transfers are the most cost-effective way to help people, but most studies have examined schemes in developing countries.

The new study, funded by the government and carried out by Kings College London (KCL) and homelessness charity Greater Change, will recruit 360 people across England and Wales. Half will continue to receive help from frontline charities. The other half will receive additional support from Greater Change, with a support worker discussing their financial issues and then paying for items such as rent deposits, outstanding debts, work equipment, white goods, furniture or new clothes. We do not make direct transfers to avoid interruption of benefits due to cash inflow.

Professor Michael Sanders, who runs KCL's Experimental Government Department, said: “What we were trying to understand are the boundary conditions of cash transfers. When does it work? Who does it work for? How much do you have to give people to make it work?

One of the first cash transfer schemes was in Mexico in 1997 and has been used worldwide since then. But most of the evidence comes from low- and middle-income countries, and there has been opposition from politicians and the public who believe people will spend their money unwisely. Last year, Canadian researchers found that giving CA$7,500 (4,285) to 50 homeless people in Vancouver was more effective than the cost of housing them in shelters, saving about CA$777 (443) per person.

Small-scale studies have been conducted in the UK, such as a 2012 initiative by the Joseph Rowntree Foundation that helped 12 rough sleepers, but Sanders said this was believed to be the first large-scale study. In addition to the Greater Change trial, KCL researchers are conducting four other similar studies. Greater Change has helped around 1,300 homeless and homeless people in London and Essex over the past six years.

On average, every person we help saves approximately 35,000. [in public spending]Jonathan Tan, co-founder of the charity, said: Approximately half of the clients were involved in the criminal justice system.

Government statistics show that 13% of prisoners become homeless after their release, putting them at greater risk of reoffending. Some told the Observer that they reoffended in order to return to prison. The 2022 re-offending rate for offenders released from custody or on court orders in England and Wales was 33.2%.

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We know that less than 9% of ex-offenders who leave prison reoffend after 12 months, Tan said. The charity found that 86% of people it helps people who are homeless are no longer homeless after 12 months. The KCL study is a way to determine whether success comes from handling easier cases.

Tan said he didn't think it was because they were sending us more solid cases. But we won't know until randomized controlled trials are completed.

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