A B.C. research project gave homeless people $7,500 each the results were 'beautifully surprising'
Key Excerpts from Article on Website of CBC (Canada's public broadcasting system)
Posted: October 19th, 2020
The New Leaf project is a joint study started in 2018 by Foundations for Social Change, a Vancouver-based charitable organization, and the University of British Columbia. After giving homeless Lower Mainland residents cash payments of $7,500, researchers checked on them over a year to see how they were faring. All 115 participants, ranging in age between 19 and 64, had been homeless for at least six months. Of those, 50 people were chosen at random to be given the cash, while the others formed a control group that did not receive any money. "I had no expectations and really high hopes," said Claire Williams, CEO of Foundations for Social Change. What researchers found after 12 months, she said, was "beautifully surprising." Not only did those who received the money spend fewer days homeless than those in the control group, they had also moved into stable housing after an average of three months. On average, cash recipients spent 52 per cent of their money on food and rent, 15 per cent on other items such as medications and bills, and 16 per cent on clothes and transportation. In comparison, spending on alcohol, cigarettes and drugs went down, on average, by 39 per cent. [Williams] said it costs, on average, $55,000 annually for social and health services for one homeless individual. According to study data, the project saved the shelter system approximately $8,100 per person for a total of roughly $405,000 over one year for all 50.
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