We gave $7,500 to people experiencing homelessness — here's what happened next
Individuals experiencing homelessness are heavily stigmatized, dehumanized and perceived to be less competent and trustworthy.
- Individuals experiencing homelessness are heavily stigmatized, dehumanized and perceived to be less competent and trustworthy.
- A 2020 count by the BC Non-Profit Housing Association in Metro Vancouver found there were 3,634 people experiencing homelessness; among them, 1,029 unsheltered and 2,605 sheltered.
- Present approaches are failing, as evidenced by the rapidly increasing number of people experiencing homelessness.
Trying something new
- We gave a one-time cash transfer of $7,500 to people experiencing homelessness in Vancouver.
- This lump sum, equivalent to the 2016 annual income assistance in British Columbia, provided people the financial freedom to pay rent and meet other living costs.
- The cash transfer also represented a dignified way to empower people to escape homelessness.
Our participants
- The 50 participants in the cash group were informed about the cash transfer only after completing the baseline survey.
- We lost contact with around 30 per cent of participants during this time while some relocated away from Vancouver.
- The workshop consisted of a series of exercises to help participants brainstorm ways to regain stability in their lives.
- Coaching consisted of phone calls with a certified coach trained to help participants achieve their life goals.
What we found
- That means the cash transfers actually saved the government and taxpayers money.
- Cash recipients increased spending on rent, food, transit and things like furniture or a car.
- That challenges the stereotype that people in homelessness would squander money they receive on alcohol and drugs.
- However, around 50 per cent of participants in our study moved into housing just one month after the cash transfer.
- But despite that, they were still below the poverty line and nowhere close to meeting the living costs in Vancouver.