Sometimes the simplest approaches can be the most effective. We know that financial insecurity is one of the main structural factors behind homelessness. So giving no strings attached financial assistance directly to individuals in adversity is a potentially powerful - and simple - solution for people affected by homelessness.

This is why I am so excited to share some initial findings of pioneering work that we have been undertaking with partners to establish an evidence base for the impact of financial assistance for people with experience of homelessness.  

Unconditional cash transfers have a strong evidence base for positive impact, particularly from their use in international development. But despite this evidence, they have been under-used to help people experiencing homelessness. And before our programme, there had never been a trial in the United Kingdom.‍

The courage to test controversial approaches

I therefore pay a particular tribute to our partners in our pioneering programme, the Personal Grants project, which is the first to invest and rigorously evaluate unconditional cash transfers to people with experiences of homelessness in the UK. This is testing the impact of a one-off direct payment, transferred to an individual’s bank account. It was made possible by the courage and far-sightedness of St Martin-in-the-Fields charity and our founding delivery partners The Wallich, Simon Community Scotland and Aspire Oxfordshire.

I want to take a moment to explain why this took courage. Regrettably, much stigma attaches to homelessness. All too often the language of blame is directed at individuals who experience homelessness, rather than its root causes. For these reasons, making unconditional cash payments directly to people affected by homelessness can be, for some people, controversial - even unconscionable.

This mirrors the skepticism that initially surrounded cash transfers in other fields, such as international development. However, through rigorous evaluation using randomized controlled trials, researchers were able to demonstrate the effectiveness of cash transfers in alleviating poverty and improving well-being. These studies helped shift perceptions and paved the way for wider adoption of cash-based aid programs.

Similarly, we believe that rigorous evaluation of our Personal Grants project can address concerns head-on and provide the evidence needed to demonstrate the potential of cash transfers to help people experiencing homelessness. By using robust research methods, we can isolate the impact of cash transfers and understand the extent to which positive changes are directly attributable to the cash assistance itself, rather than other factors.

Initially, when we made the case for public money, the answer was always no. This is why the boldness of a homelessness charity made such a difference in supporting much of the cost of the first phase of the project, and forward-thinking charities used their independence to deliver the programme. After a long history of providing financial assistance to individuals to help them out of, or to prevent homelessness, St Martin-in-the-Fields charity wanted to test the role this more radical approach of direct cash transfers might play. I salute them.

One of the reasons there is resistance to giving a cash lump sum directly to people experiencing homelessness is an assumption that individuals might ‘waste’ the money on status goods or that they might overdose. Some people working in homelessness share this view.

What we've observed so far

We have not had a single adverse incident among any participants in our trial. This tells a powerful story about agency and trust. The list of things that people spend their money on is practical, and speaks to me of individuals trying to improve their lives in ways that are personal and meaningful to them: furniture, books, clothes, gym membership. Some thought of others rather than themselves, and sent money or bought gifts for members of their family, or supporting friends financially. Participants told us their wellbeing had improved, meaning they were happier, more socially connected, and able to make long term choices, aiding their progression out of homelessness.

None spent the money on drugs, alcohol, or gambling. Three months later, some people had not spent all of the money. They kept left-over cash in their bank account as savings.

So already we can show that common assumptions are wrong. Some of the front-line staff at homelessness charities we are working to deliver this project have revised their own views about whether people they support can be trusted with a lump sum of money.

This reinforces a growing body of evidence that demonstrates the capacity of people experiencing homelessness to make sound financial decisions when given the resources and autonomy to do so.

What happens next?

We look forward to sharing the findings of the initial phase of the Personal Grants project in Spring 2025. While this initial phase was an incredibly important ‘foundational’ first step, we learned that a cohort of 81 participants is too small to enable us to draw definitive conclusions about the impact of cash transfers. Specifically, we need a larger sample size to confidently assess the "additionality" of cash transfers – that is, the extent to which they improve outcomes beyond what would have happened with existing support services.

To achieve this, we will be expanding the cohort of participants with delivery partners in London and Belfast. Our aim is to bring another 250 participants into the trial. This will enable the evaluation partner - King’s College London - to compare outcomes between those receiving the cash lump sum and those receiving ‘business as usual’ support, and determine the unique contribution of cash transfers.

We have begun discussions with organisations that are interested in being involved and will shortly be opening applications for organisations operating in the two areas to take part. So do hope to hear from you if you're interested in joining us on this journey. We expect the expanded trial to be completed within the next two years, with the full findings and analysis available by Spring 2027.

We are incredibly grateful for the support of all our partners in this project: St Martin-in-the-Fields Charity, Citi Foundation, our new and existing delivery partners, and the Policy Institute at King’s College London. We are united in our commitment to finding effective solutions to homelessness, and we believe that this project will provide invaluable insights into the potential of cash transfers to help people exit homelessness for good.

By testing the effectiveness of cash transfers, we hope to encourage a shift towards more person-centred and empowering interventions. We believe that this project has the potential to spark a broader conversation about the role of financial assistance in ending homelessness and to inspire innovative solutions that address a root cause of this issue.

We are particularly excited about the potential for this project, and other financial assistance models, to inform policy and practice at the local, regional, and national levels. By generating robust evidence on different models, we can help to shape more effective and compassionate responses to homelessness. We are committed to working with our partners to disseminate the findings of this project widely and to ensure that the evidence is used to inform future strategies and interventions aimed at preventing and ending homelessness.

• Lígia Teixeira is Chief Executive of the Centre for Homelessness Impact

Find out more about the Personal Grants Project and apply here.

‍