By Nicholas

When poverty is discussed in the UK it is usually narrowed down to an inability to acquire something highly specific that is essential to everyday life. So there is talk of food poverty, fuel poverty, period poverty. This is somewhat misleading as it may suggest that there is only one thing that cannot be acquired. Poverty, however, at the most fundamental level is the inability to acquire all those things that are used in everyday life. It cannot be narrowed down to specific things. An important point is that it is the decision of the individual how to allocate or spend their resources.

There is another level of poverty beyond the lack of those things that are essential to everyday life. Merely being able to live – survive might be a more accurate term – is not transformative of quality of life. A much higher level of resource is needed to be transformative. A project currently being led by the Centre for Homelessness Impact is attempting to create and measure such transformative effects.

This ground-breaking project aims to assess the effectiveness of providing direct personal grants (cash transfers) to people experiencing homelessness. An important part of this is that the funds are unconditional, meaning recipients have autonomy to decide what they would like to purchase.  

The first phase of this project has concluded and several beneficiaries have already reflected on the consequences of receiving a substantial one-off cash transfer.

One beneficiary used the grant to pay off debts that were escalating as a consequence of non-payment. In their words: “It was such a relief - I don’t owe anybody anything. It was brilliant, such a great feeling. I hadn’t felt that way for ages...The money came just at the right time, just when I needed it, because I just wanted to get better. I am really motivated to get myself back to normal...I am much better now and have not had a panic attack in God knows how long, probably since then to be quite honest. About a week before the money came in was probably my last panic attack where I couldn’t control my breathing. 

I could feel it instantly just lift off my shoulders. When I saw that money in the account I was just - oh my God - and then I went and paid all the debts off. It just felt like - freedom!”

Another beneficiary used the grant to purchase a reliable vehicle. The consequence was that the beneficiary was able to have far more contact with relatives, which was not possible previously. In their own words, their world has opened up hugely: “If I hadn't got it I would still be stuck in my house all the time - my car is my safety bubble”.

Both of these examples offer a glimpse into how transformative unconditional cash payments can be for people experiencing homelessness. It is a powerful feeling being able to take ownership of your choices after an experience that can make you feel invisible and helpless. 

Two examples are, however, not sufficient evidence. That’s why this project is so important. It is seeking to assess the impact of cash transfers among a large group of people with experience of homelessness. The sample size means we should be able to draw firm conclusions when comparing their effect with a control group.

I will be excited to see the final results once the second stage has concluded. Poverty is one of the main causes of homelessness, and evidence shows that poverty in childhood significantly raises the risk of homelessness in adulthood. So if we can establish clear evidence that cash transfers can help people with experience of homelessness to navigate challenges linked to their poverty at critical points in their lives, it would be a great step forward.

• Nicholas is a member of the Centre for Homelessness Impact’s Lived Experience Associate Network. To find out more about this Network please email jenny@homelessnessimpact.org