Young people who received the no-strings sum when leaving care also spent less on alcohol, tobacco and drugs
The first UK trial to test the impact of unconditional cash payments on homelessness found people given £2,000 were more likely to be happier, in stable housing and had stronger relationships six months later.
The landmark study by the Policy Institute at King’s College London found that young people leaving care who were given a one-off £2,000 cash lump sum, with no strings attached, were less likely to be sofa-surfing than their peers and had a better quality of life.
Young people who received the cash transfer also reported they spent 12% less on alcohol, tobacco or drugs than they had previously.
“It shows that there are some people for whom a payment of that amount at the right time changes their trajectory in life,” said Prof Michael Sanders, director of the experimental government team at the Policy Institute. “It enables them to secure a standard of housing and make sure they’re comfortable there.
