Homeless People Were Given £2,000, No Strings Attached. Here’s What They Spent The Money On
The Centre for Homelessness Impact trial transferred a lump sum directly into bank accounts but the study showed people spent the cash on furniture, courses and even a second-hand car, reports the Big Issue.
A new trial has handed people experiencing homelessness £2,000 to spend on whatever they want – and what happened next may surprise you. The Centre For Homelessness Impact (CFIH) trial transferred the lump sum directly into the bank accounts of people with recent experience of rough sleeping or staying in temporary accommodation in London and Belfast and attached no conditions to how they spent it. A total of 125 people received the cash while the other 125 taking part receive support from homelessness charities and other services. The goal of the trial – the first of its kind in the UK and emulating a smaller study in Vancouver, Canada – was to see what they would spend the money on.
The final results are expected to be published in 2027 but early observations reveal that participants used the money to help improve their lives. CFIH reported that some bought furniture and household items for new accommodation or paid for clothes or courses to look for work. Others bought a second-hand car to be able to drive their children to school. Ligia Teixeira, chief executive of the Centre for Homelessness Impact, said: “Our cash transfers project is rooted in a straightforward yet powerful belief: when people have direct access to resources, they gain agency over their lives and livelihoods.”
She added: “By challenging outdated assumptions about how support is delivered, we hope to see not just immediate relief but real shifts in economic participation, decision-making and resilience. We need to ask ourselves what is best for all of us in society. Do we continue to invest in an ever growing crisis system or do we give those at risk even better opportunities to self exit?”
While cash transfers are widely used in low and middle-income countries, particularly in sub-Saharan Africa and Latin America, there have been fewer programmes that give cash transfers to people affected by homelessness and, until now, none of any scale in the UK. With the cost of homelessness skyrocketing across the UK, CFIH’s trial is looking to evaluate whether direct cash transfers can reduce poverty and boost health as well as participation in society and the economy.
The randomised controlled trial, funded by Citi Foundation and St Martin-in-the-Fields Charity, will show the impact on participants’ housing stability one year after they received the money when final results are published in 2027. Researchers will also use surveys to assess any impact on their housing quality and satisfaction, wellbeing, financial security, social connectedness and contact with public services and the criminal justice system.
Initial observations, however, are promising.
One man used some of the money to pay off debts and the remainder to furnish a new home, as he moved out of temporary accommodation. A parent bought a car to be able to drop their children off at school and one participant has used the money to fund driving lessons and hopes to buy a car. Another young man also paid off debts and began researching courses to enable him to find work as a plumber. One woman said that the money came just at the right time, as she was struggling with childcare costs. For a young person who wasn’t able to study at university because they couldn’t afford the fees, the money has given them hope to continue pursuing education. Other items purchased include children’s clothes and Christmas presents, tickets for a first ever holiday abroad and savings to start a business. One woman said the money had come at the perfect time as she was heavily pregnant and had just been offered a move-on property.
Angie Allgood is founder and director of NEWway Project in Newham, East London, which is one of the delivery partners alongside Change Please Foundation, Centrepoint, Lambeth Council and more. Allgood said: “So far, the guests that have received the money have spoken about feeling more optimistic, happier, hopeful and can see a better future. We are excited to see the long term outcomes.” In a pilot phase of the trial, items purchased included sports equipment, a television, a mobile phone, furniture, gym membership, books and clothes.
