A groundbreaking new trial in the United Kingdom will provide 125 people experiencing homelessness with a direct cash payment of £2,000 each, with absolutely no restrictions on how the money is spent.
Details of the UK-First Cash Transfer Scheme
The initiative, run by the Centre for Homelessness Impact, marks the first time such an unconditional cash transfer scheme has been tested for homelessness in the UK. The trial will operate across London and Belfast, with selected participants receiving the funds directly into their bank accounts.
This study forms a crucial part of research examining whether providing direct financial assistance can lead to better long-term outcomes for individuals, moving beyond traditional support services. While this is a UK-first, it follows the model of a similar successful study conducted in Vancouver, Canada.
Early Findings and Charitable Context
Although the full findings from the comprehensive study are not expected to be published until 2027, early feedback has been revealing. Initial reports suggest that participants are primarily using the money for practical purposes directly linked to securing housing, finding employment, and addressing urgent family needs.
This trial emerges alongside the vital work of charities across the UK. For instance, St Basils, a charity supporting vulnerable young people aged 16 to 25 in the West Midlands, recently highlighted its impact. The organisation, which began in Digbeth in 1972, helps thousands each year to find homes and build skills.
At its recent Big Sleepout event at Birmingham's Millennium Point, St Basils raised over £43,000 to aid those at risk. Annually, the charity supports more than 4,000 young people across the region, offering not just housing but also critical life skills, mental health support, and pathways into education and work.
The Broader Implications for Social Policy
The trial challenges conventional approaches to homelessness support by testing the power of unconditional trust and financial agency. By removing bureaucratic hurdles and allowing individuals to prioritise their own needs, researchers hope to gather robust evidence on a potentially transformative method of intervention.
The success of this pilot could influence future government policy and charitable funding models across the UK, shifting focus towards more direct, person-centred solutions for ending homelessness.
