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.
• 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.