“ You've heard this refrain before -- giving money to homeless people is not the best way to help them because it might be squandered, or spent on harmful habits. But a new Canadian study makes a powerful case to the contrary....
Researchers gave 50 recently homeless people a lump sum of 7,500 Canadian dollars (nearly $5,700). They followed the cash recipients' life over 12-18 months and compared their outcomes to that of a control group who didn't receive the payment.
The preliminary findings, which will be peer-reviewed next year, show that those who received cash were able to find stable housing faster, on average. By comparison, those who didn't receive cash lagged about 12 months behind in securing more permanent housing.
People who received cash were able to access the food they needed to live faster. Nearly 70% did after one month, and maintained greater food security throughout the year.
The recipients spent more on food, clothing and rent, while there was a 39% decrease in spending on goods like alcohol, cigarettes or illicit drugs...
...Participants were screened for a low risk of mental health challenges and substance abuse....
"People very much know what they need, but we often don't equip them with the intervention or the services that really empowers them with choice and dignity to move forward on their own terms," Williams said.
Direct cash transfers are not "a silver bullet for homelessness in general," and the program focused on "a higher functioning subset of the homeless population," Williams said, but she believes the research shows that providing meaningful support to folks who have recently become homeless decreases the likelihood they will become entrenched in the experience....
The study shows there are advantages for the taxpayer, too.
According to the research, reducing the number of nights spent in shelters by the 50 study participants who received cash saved approximately 8,100 Canadian dollars per person per year, or about 405,000 Canadian dollars over one year for all 50 participants.
"There's a common misconception that the cost of doing nothing is free or cheap and it absolutely is not," Williams said...
Innovative solutions to the issue are even more pressing right now. Berg thinks the research confirms what is true for many people experiencing homelessness: money can solve it.
"There are certainly people who are homeless who have deeper, more severe problems," Berg explained, "but for many people, it's simply a matter of -- they ran out of money, lost a job, fell on hard times, became homeless. Once they're homeless, it's very difficult to get enough money saved up in order to find a place to live."
"People can be relied on, if they get the money upfront, to take care of the problem themselves," Berg added.”
You’ve heard this refrain before – giving money to homeless people is not the best way to help them because it might be squandered, or spent on harmful habits. But a new Canadian study makes a powerful case to the contrary.
www.cnn.com