‘I left the care system with little support – but £2,000 changed everything’
Aeryn was shocked when she received the phone call informing her that she would be given £2,000 in cash as part of the unconditional payment.
“My partner and I were just staring at each other. I was speechless for about 10 minutes,” he said. “These things don’t happen to me often; I’m not a very lucky person.”
Aeryn had been selected to take part in the first trial in the UK to test the impact of unconditional cash transfers on homelessness; where young people were seen leaving care for a one-off cash lump sum of £2,000.
The findings, compiled by King’s College London and the Center for the Impact of Homelessness, showed young people who received the money were more likely to live in stable housing and less likely to be “sofa surfing” than young people who were not paid. They were also found to be happier, have stronger relationships and were less likely to spend the night in hospital.
Aeryn was placed in care between 2019 and 2021 before deciding to rebuild her life and apply for university.
He was saving for a computer to help with his studies when his personal advisor notified him that he had received the money.
“I was working on a slow laptop and it kept crashing. I had been saving up for a new computer but when I got the money it meant I could finally buy what I really needed to help with college,” he said.
She also took the opportunity to invite herself and her boyfriend on a trip to Liverpool, where they spent the weekend browsing shops, building a Build-A-Bear, and visiting the Beatles’ iconic landmarks.
As part of the trial, 99 young people leaving local authority care in nine areas of England received a one-off payment of £2,000 from June 2023. Their results were tracked at six and 12 months and compared with those of 200 similar care leavers who did not receive payment.
It found that participants who received the money were 8 percent more likely to remain in stable housing after six months, and there was a 6.6 percent decrease in couch surfing. It also found that between 2 per cent and 4 per cent fewer care leavers were subject to discharge for antisocial behaviour.
Young people who received the money were more likely to engage in health care, such as seeing a GP, at baseline and were less likely to stay overnight in hospital, with 17 fewer stays. Social workers were required to notify researchers if any participants experienced adverse consequences, but none were reported.
Those who received the cash also consistently reported spending 12 percent less on alcohol, tobacco and drugs than they did before.
Speaking of the impact she had, Aeryn said: “I think it pushed me forward. I was performing better at university because I had a computer, but I could also use it to play online games.
“My partner lived far away, but having a computer meant we could spend time together online.”
She added: “There wasn’t a lot of support for me; it was a case of that money helping out. It was quite a nice feeling to have, because it meant my care experience had value.”
Aeryn put some of the money towards things that would help them work, while other care leavers could put it towards boarding accommodation, clothing and traveling to job interviews.
Aeryn is studying forensics at university and hopes to become a crime scene investigator.
Professor Michael Sanders, director of the experimental government team at King’s College London Policy Institute, said: “The findings from the trial are encouraging, with consistent positive effects on participants’ housing stability, wellbeing, social connectedness, contact with healthcare and other outcomes we measured.
“The effects on some housing outcomes appear to diminish over time, suggesting that a one-off transfer of this amount may be insufficient to produce lasting effects on housing outcomes. However, these results nevertheless highlight the potential benefits of unconditional cash transfers, which not only are easier and cheaper to administer than other types of interventions, but also provide recipients with greater empowerment and dignity and recognize that they are often best placed to make life decisions.”
Executive director of the Homelessness Impact Center, Dr. Ligia Teixeira said: “Cash transfers have a strong evidence base internationally as a simple tool to prevent harm from poverty. We are excited to receive first results from rigorous causal studies to test their effectiveness in preventing homelessness.
“Policymakers and local government leaders should consider direct financial support, with no strings attached, for young care leavers as a policy tool and a practical way to help them transition to independent living.”
The trial was funded by the Homelessness Impact Center and the Cabinet Office evaluation taskforce through the Evaluation Acceleration Fund.
The government has been contacted for comment.
