This is exactly the situation that some individuals supported by The Wallich experienced in the summer of 2022.
Four organisations from all over the UK, who support the people experiencing homelessness, were involved in this pilot project.
Service users were randomly selected for a top-secret cash transfer trial, one of the first of its kind in the UK.
They received a £2,000 deposit into their bank account with no restrictions on how they could spend it.
We’re ecstatic to say the results should mean a greater trust in people we support to spend their money productively.
Research from trials performed worldwide suggested that a trial like this has a positive outcome – rather than a negative one.
Given the complex challenges faced by those supported by The Wallich, there was a concern that some individuals might use the money to cope with stress or past trauma through substance use or impulsive spending.
There were important safeguarding concerns, including the potential for financial exploitation and the possibility that, for some individuals, a sudden cash injection could act as a trigger for high-risk behaviours.
These risks also carried the potential for negative public perception, which could influence future support for similar initiatives.
On the other hand, many participants were likely to use the money wisely, making choices that supported their well-being and stability.
For those experiencing homelessness or living in temporary accommodation, this cash injection could provide a crucial opportunity to improve their circumstances and work toward a more secure future.
The proof, however, would be in the pudding.
Kings College London administered the trial with The Wallich.
Support staff were not told any real details, other than if they feel the clients they support are eligible for the trial.
King’s College London simply asked participants if they would be interested in joining a trial where they could potentially receive money, with the selection being random. Participants were required to have a bank account and would be contacted at random.
Every participant received a voucher for taking part, whether they received the money or not.
Not even The Wallich would know who would receive the money.
After a lot of meetings, safeguards, ethical dilemmas and protocols to ensure the integrity of the trial, the project got off the ground and clients were randomly selected.
*All names have been changed to protect the identity of the client
Olivia* had a long history of homelessness and had been dependent on substances for many years.
Through The Wallich’s support, we were able to house Olivia with her partner and provide intensive support to help them manage all aspects of their lives.
She has spent the money on a new laptop as she wants to complete an Open University course.
Maya* was so grateful for the money.
She has been able to give her children £200 each, something she has never been able to do before.
They have put £50 on the gas and electric so that they have a head start on the price increases.
Ethan* planned a trip with his son with some of the money.
He also paid off his Aunt who let him borrow £400.00 for carpet when he first moved into his flat.
Jordan* was happy to take to part in the research and was very pleased to have received the cash award.
Jordan planned to give half of the money to his two children as he felt that since losing his job and becoming homeless, he could not provide what he wanted to for them.
He also said it would help him to buy some clothes for himself and to pay his bills.
Jack* has a history of rough sleeping and accessing emergency accommodation, he had been sleeping in a tent when we first started engaging.
He was happy to take part in the research. Due to his anxiety and dealing with new people, being contacted by phone was ideal.
The money has proved very beneficial and has enabled Jack to get a dog.
He had spoken for quite some time about getting a dog to aid with mental health and physical activity, so the extra money has made it possible to commit to that.
Jack actually thought I was pulling his leg when I told him he had been chosen, especially when I told him the actual amount of money he would receive – he was amazed.
Tracey* was being supported by The Wallich and had recently moved out of B&B accommodation and into her own property.
Not only did the award of cash help her financially, but she opened her own bank account with support and is now in control of her own finances.
Tracey said she was going to treat her dog to some nice toys and spend the rest on her flat as she never had any spare money ever to do anything nice for herself.
The results of this cash transfer trial offer a powerful reminder of the potential impact of empowering individuals with the freedom to make their own financial decisions.
While there were concerns and risks involved and lessons to be learned, the stories shared by participants show how, when given the chance, many people use such opportunities to improve their circumstances, build stability, and invest in their futures.
The trial has provided valuable insights into how unrestricted financial support can help those facing homelessness, not just to survive, but to thrive.
By trusting individuals to make choices for themselves, we can foster a greater sense of autonomy and dignity in their journey toward rebuilding their lives.
Innovative projects like this may pave the way for future initiatives aimed at breaking the cycle of homelessness and offering more people the opportunity to shape their own futures.