Rough sleepers to get £2,000 to spend on anything they like as part of study to see if money gets homeless people into housing quicker
A charity transferred the lump sum directly into the bank accounts of people with recent experience of rough sleeping or staying in temporary accommodation.
By OLIVIA CHRISTIE, NEWS REPORTER
Published: 07:26 GMT, 30 December 2025 | Updated: 11:49 GMT, 30 December 2025
Rough sleepers are receiving a lump sum payment of £2,000 to spend on whatever they want - with some putting the cash towards a gym membership, holiday or a car.
Researchers at King's College London will follow those given the funding for a year after 250 homeless people in the capital and Belfast were recruited for a trial.
Half of the participants are being given the cash with no strings attached, transferred directly into their bank accounts, while the remaining 125 are receiving nothing.
Those taking part have been screened to ensure that giving them the one-off payment will not harm them - and those with addiction issues have been excluded.
In a pilot phase of the trial, people were said to have bought furniture or household items for new accommodation or paid for clothes or courses to look for work.
Others purchased a second-hand car to drive their children to school. One paid off debts, another funded driving lessons and a third used it as savings for a business.
Further items purchased included children's clothes, Christmas presents, a holiday abroad, sports equipment, a TV, mobile phone, gym membership, books or clothes.
While some participants gave money to relatives or friends, others had not spent all of the cash within three months and put it in a bank account as savings.
People living on the streets in Central London last month as homelessness remains a big issue
The study is aiming to see if the money helps homeless people find housing quicker. It is unclear whether the participants are British or foreign nationals.
The research, which is the first of its kind in the UK, emulates a smaller study in Vancouver, Canada in 2018.
That study found that rough sleepers who received the payment spent a lot less time homeless and didn't increase their spending on alcohol and drugs.
The trial in the UK has been supported by the Centre for Homelessness Impact, the Big Issue reported.
The organisation transferred the lump sum directly into the bank accounts of people with recent experience of rough sleeping or staying in temporary accommodation.
The final results of the study are not expected to be published until 2027.
Ligia Teixeira, chief executive of the Centre for Homelessness Impact, said: 'Our cash transfers project is rooted in a straightforward yet powerful belief: when people have direct access to resources, they gain agency over their lives and livelihoods.