Homeless people were given free cash to buy what they want – here’s what they spent their money on

Homeless people have been given a ‘significant’ amount of cash to spend on what they want in a first-of-its-kind trial that could shape the future of homelessness support in the UK.

The personalised budgets trial, run by the Centre for Homelessness Impact (CFHI) and commissioned by the Ministry of Housing, Communities and Local Government, saw former rough sleepers living in temporary accommodation randomly selected to receive financial support in August 2024.

They then pitched to charity support workers on what they would spend the money on. The support providers then spent the money on their behalf, meaning that the cash never entered bank accounts or messed with benefits.

The money was used for everything from furnishing homes to starting civil law courses from paying off debts to even contributing to wedding costs.

The randomised controlled trial will assess the long-term benefits of the project, compared to rough sleepers who did not receive the cash support. Big Issue has been asked not to reveal how much money each person received in order to avoid compromising the results of the trial.

Typically homelessness funding tends to be very narrow with money designated for a specific purpose. The trial hopes to shatter that reality and the cash was used for a broad variety of reasons.

“We were encouraging our partners to be quite flexible and creative in how they spent that money,” said Ella Whelan, the trial’s programme lead at CFHI. The trial is one of eight CFHI projects under its three-year Test and Learn programme, backed with £15 million of government funding.

“So obviously there were buckets of spending that we had very commonly around clearing like rent arrears or other debts, which maybe is to be expected, but is still super helpful and really impactful for people.

“Then we also had other things around, like getting back into work or starting college courses or things like that, also things like laptops or other tools that were needed. We also had things like driving lessons, enabling people to reconnect and take on work. They were some of the things that people were spending that money on.”

A total of 10 frontline charity and local authority delivery partners across England have taken part in the study. 

The trial uses a model pioneered by an organisation called Greater Change that provides personalised cash grants for specific purposes.

What people spent their money on

Homelessness charity Porchlight has been supporting rough sleepers taking part in the trial in Kent. The charity recently marked the trial’s end with an event in Dover, sharing exactly what people spent the money on.

For Sarah, the money enabled her to furnish a new home where her children and grandchildren can visit, allowing her to reconnect with them. 

“Porchlight helped me get a place of my own and when I was awarded this money, I was able to kit it out,” said recovering addict Sarah.

“I could choose what I wanted, I could make it feel like home. Getting the money has allowed me to do the final bits to my new home that mean I get to see them and my grandkids more. My kids haven’t had me for a long time. They have me now and you can’t ask for anything more than that.” 

Sarah said she was able to get white goods, a sofa, a bed, a clothes airer, a washer, a freezer, a cooker and an air fryer, as well as drawers and curtains as part of the trial. It turned her empty shell property into a home.

She told Big Issue that the chance to make a comfortable home is having a big impact on her ability to overcome her drug addiction and remain out of homelessness.

“It’s massively different – it’s home now. I’ve got everything I need there. I don’t have to go out and source everything, I don’t have to go and buy food every day. Living costs a lot less on a day-to-day basis. It just makes life so much easier,” said Sarah.

“Nothing would ever make me lose this again. I will never not pay my bills. I will make sure I’ve got food and the things I need at home. I will never go without those things again. I will never risk losing what I’ve got now.

“It’s my safe space. It’s my sanctuary. I can shut the door, I can shut the world away. There’s a lot to be said for that.”

For Colin, the cash was used to clear longstanding debts that he feared would leave him trapped in temporary accommodation.

He said paying off the money he owed has boosted his mental health.

“I owed rent arrears and some old court fines for unpaid train tickets,” said Colin. “I was always worried about where I’d find the money to pay for these things. It would play on my mind and I was getting depressed. This money allowed me to pay them off – it saved me a lot of stress. Now I have a job and my debts are up to date. Things are much better.” 

As for Kim, she used the money to take up a civil law course and hopes to eventually help other people who have experienced homelessness like her.

“When you’re homeless, it’s like you’ve been put at the back of the queue,” said Kim. “There’s no stability, which makes you more likely to turn to unhealthy coping mechanisms. But when you know someone’s helping you, you’re more likely to try and make a change.

“When I was awarded this money, it was overwhelming. It is a lot of money to people like us – I felt like I’d won the lottery. I bought a phone, laptop and printer so I can do a college course. I want to do civil law so I can advocate for people who are homeless. Getting this money gives you hope.” 

Did the money help people experiencing homelessness?

King’s College London is set to release a final report into whether it made a difference to people’s lives in autumn 2026.

CFHI’s Whelan said she is hopeful that the trial – and the other parts of the Test and Learn programme – can “feed into” Labour’s pledge to focus on preventing homelessness.

Porchlight’s chief executive Tom Neumark told Big Issue he is already convinced that the idea has long-term potential.

Porchlight has previously received support from Big Issue Invest, Big Issue’s social investment arm, with a £200,000 loan to help it continue to support people experiencing homelessness after a contract fell through in 2022.

“The feedback that people were giving us about it was that it was life-changing, basically,” said Neumark, who added that one person even opted to use some of the cash on their wedding.

“There’s no way in hell, traditionally, you’d be able to write to a local charitable foundation and say, “Can I have three grand to get married?” he said. “But what is it that makes a house a home? It’s sharing with someone you love, that’s a great part of it, and so I think it’s fantastic.

“It really expanded our minds as a charity about what gives people a sense of purpose. It’s not just the keys.”

Read more:

• Inside the plan to give free cash to homeless people in Manchester: ‘It’s time to try something new’
• Canada gave out free money to help homeless people. It reduced rough sleeping and busted stereotypes
• Hundreds of care leavers were given free money, no strings attached. Here’s what happened

The idea of giving money to people experiencing homelessness can be a tricky one and is often shaped by stigma.

Neumark said that the trial’s model ensured the money went to an agreed purpose but the items participants chose to spend the money on surprised him.

“I think some people’s resistance to the idea of giving money to people who are experiencing homelessness, it can come from stigma,” he said. 

“It can come from the idea that people experiencing homelessness are so different to me: the person who’s going to give the money. From what I’ve heard of the stories of what people spend the money on and how they felt once they spent the money, I felt nothing but empathy for what people were saying.”

For Sarah, the results are already clear. She would like to see more people given to be given the personalised budget she received.

She said: “I would love to see other people have this opportunity that I’ve been given. If I hadn’t had that grant and the things in my flat that I needed then I can’t honestly say that I would still be clean and I wouldn’t have struggled.

“Not having the things you need puts a lot of pressure on people and this took that away from me. So for people to have that opportunity to be given that grant, that would just be amazing.” 

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