Huge study showed what happened when homeless people were given £2,000 no strings attached

A huge study is looking at what happens when people experiencing homelessness are given a large sum of money with no strings attached.

A lump sum of £2,000 was transferred directly into the bank accounts of those in London and Belfast with a recent experience of rough sleeping or staying in temporary accommodation.

In 2024, Shelter found that at least 354,000 people in England alone were homeless, with the capital coming out the worst, with one in 47.

And the Centre for Homelessness Impact (CFIH) aims to evaluate whether these direct cash transfers can reduce poverty and boost health alongside participation in society and the economy.

While the final results aren’t set to be published until 2027, there are already examples of what the recipients have spent the money on.

There were no conditions attached to the money. (Getty Stock Image)

There were no conditions attached to how the money from CFIH was spent, and observations already show that people used it to help improve their lives.

Big Issue reports that one man used some of the money to pay off debts and then used the rest to furnish a new home as he moved out of temporary accommodation.

And a woman said it came just at the right time for her, as she had been struggling to meet childcare costs.

Another woman received the money while heavily pregnant and had just been offered a move-on property, making it perfect timing for her.

The money also gave one young person hope of pursuing further education, as they were unable to study at university due to the fees.

Meanwhile, another youngster managed to pay off debts and started looking at courses to help them find work as a plumber.

One person used it to buy a car so they could drop their kids off at school, while another has used it to pay for driving lessons as they hoped to buy a car in the future.

One bought a new car while another furnished a new home. (Getty Stock Image)

Other purchases made thanks to the £2,000 included Christmas presents, kids’ clothes, tickets for a holiday abroad for the first time ever, and savings to start a business.

Many participants also gave money or bought gifts for family or friends, while others, three months after getting it, had not spent all the money and put the remaining cash into savings.

Angie Allgood, founder and director of East London’s NEWway Project, said: “So far, the guests that have received the money have spoken about feeling more optimistic, happier, hopeful and can see a better future. We are excited to see the long-term outcomes.”