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Related Experiment Video

Updated: Jul 17, 2025

Digital Home-Monitoring of Patients after Kidney Transplantation: The MACCS Platform
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Unconditional cash transfers reduce homelessness.

Ryan Dwyer1, Anita Palepu2, Claire Williams3

  • 1Department of Psychology, University of British Columbia, Vancouver V6T 1Z4, Canada.

Proceedings of the National Academy of Sciences of the United States of America
|August 29, 2023
PubMed
Summary
This summary is machine-generated.

Providing unconditional cash transfers to individuals experiencing homelessness reduced their time homeless and increased savings. This policy generated societal net savings, challenging public mistrust and offering a viable homelessness reduction strategy.

Keywords:
cash transfercognitive functionhomelessnessrandomized controlled trialsubjective wellbeing

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Area of Science:

  • Social Sciences
  • Economics
  • Public Policy

Background:

  • Homelessness is a significant economic and social crisis.
  • Lack of financial resources is a primary driver of homelessness.

Purpose of the Study:

  • To investigate the impact of unconditional cash transfers on individuals experiencing homelessness.
  • To assess the economic and social outcomes of providing financial assistance.
  • To explore public perception and support for cash transfer policies for the homeless.

Main Methods:

  • A cluster-randomized controlled trial was conducted in Vancouver, BC.
  • 50 individuals experiencing homelessness received a one-time unconditional cash transfer of CAD$7,500; 65 individuals served as controls.
  • Exploratory analyses examined changes in homelessness duration, savings, spending, and societal costs over one year.

Main Results:

  • Cash transfer recipients experienced fewer days homeless compared to controls.
  • Recipients showed increased savings and spending, with no rise in spending on temptation goods.
  • The intervention generated societal net savings of $777 per recipient due to reduced shelter usage.
  • Public mistrust regarding financial management by homeless individuals was observed, but interventions improved support for cash transfer policies.

Conclusions:

  • One-time unconditional cash transfers are an effective strategy for reducing homelessness and improving financial stability.
  • This approach offers societal net savings and challenges negative public perceptions.
  • The findings provide valuable insights for developing and implementing homelessness reduction policies.