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Laura Burns faced a crisis when her landlord decided to sell her flat, leaving her without enough funds to move. Energy debts and removal costs piled up, making it impossible for her to secure a new place. Desperate and on the brink of eviction, the 32-year-old mother turned to a charity for help and requested £600, an amount that would alleviate her financial burden.
The charity that came to Laura’s aid, Greater Change, believes that providing financial assistance with minimal restrictions to homeless individuals or those at risk of homelessness can help address the issue. In the current year alone, the charity has distributed £699,000 to 403 people in need. While the initiative is relatively small-scale compared to the estimated 350,000 homeless individuals in England, Greater Change emphasizes the long-term cost-saving potential of their approach.
Jonathan Tan, the chief executive of Greater Change, highlights the importance of empowering individuals with the freedom to make choices about their lives. The money offered by the charity is disbursed through support workers, with funds typically being used for rent deposits, bills, or debt repayment. According to the charity, 86% of the individuals they’ve supported have transitioned into stable housing, with almost half of them finding employment.
Despite concerns about potential misuse of funds on addictions, international studies have shown that direct cash transfers to homeless individuals do not lead to increased spending on drugs, alcohol, or tobacco. Projects like the Personal Grants initiative in the UK have demonstrated positive outcomes, with participants utilizing the funds for essential items or saving. These innovative cash transfer schemes, while not addressing the root causes of homelessness, have proved beneficial in providing timely assistance to those in need
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