A bold pilot project aims to test the impact of direct cash donations on the reintegration of homeless individuals
In London, a new social experiment is drawing attention: offering direct cash payments to people experiencing homelessness. This pilot project, unprecedented at this scale in the UK, seeks to answer a fundamental question: what if unconditional money was the key to permanently escaping life on the streets?
Of the 250 participants selected, half received a one-time payment of £2,000, with no repayment or conditions attached. The money can be used however recipients choose—whether for a rental deposit, furniture, healthcare, or transportation.
One of the beneficiaries, Lana, who spent nearly ten years homeless, described it as a life-changing moment: "It’s a happy day. I’m already imagining picking out furniture for my own place," she said.
The program’s creators, working in partnership with local charities, say the goal is to restore autonomy and confidence among those who have long been excluded from the system. They also hope to prove that this method can be more effective and less expensive in the long term than emergency shelter solutions.
Similar studies in Canada and the United States have already shown promising outcomes, with recipients more quickly securing jobs and stable housing. The results of the London trial will be closely monitored by local authorities, who may consider expanding the initiative if it proves successful.
Sources:
BBC News, “Homeless people given £2,000 in cash in London trial,” December 2025