Scientists Will Give Homeless People Money to See If It Helps Reduce Their Poverty

Researchers in the UK are beginning a groundbreaking new trial to determine if providing homeless individuals with money can more effectively reduce poverty and improve long-term stability compared to traditional assistance.

Despite growing evidence of successful cash transfer programs as a cost-effective way to alleviate hardship, skepticism remains. This is especially true in developed areas like the UK, The Guardian reported.

The trial, led by led by Professor Michael Sanders, Director of the Experimental Government Team in the King's Policy Institute, and the Centre for Homelessness Impact, will involve 360 participants in England and Wales.

Half will receive standard support, while the other half will get personalized financial assistance from the Greater Change charity, which key people will oversee how individuals spend their money. Researchers aim to understand how and under what circumstances financial aid can be the most effective.

"What we're trying to understand is the boundary conditions for cash transfers," Sanders said. "When does it work? For whom does it work? What are the amounts you need to give people in order to make it work?"

Early results from similar programs suggest significant savings in public spending. If the trial confirms the effectiveness of financial aid, it could lead to changing policies addressing homelessness in the UK.