One-off £2,000 cash grant gives care leavers head start, study finds

One-off £2,000 cash grant gives care leavers head start, study finds

A recent study has revealed that care leavers who received a single £2,000 cash payment without any conditions were less likely to face homelessness or experience stays in hospital or prison. Conducted by researchers at King’s College London, the study also found that recipients of the grant reported improved well-being, including greater optimism and confidence in handling challenges.

The research involved 302 individuals aged 18 to 25 who had spent time in care under the jurisdiction of nine local authorities across England. An initial online survey was completed by all participants, after which 100 were randomly selected to receive the £2,000 grant beginning in June 2023. The researchers monitored outcomes at six and twelve months, comparing those who received the money to those who did not.

Results indicated that those granted the funds showed a higher likelihood of living in stable housing, reduced instances of sofa-surfing, fewer criminal arrests or convictions, increased visits to general practitioners or clinics, and a lower chance of overnight hospital stays. Additionally, these young people reported spending 12% less on alcohol, tobacco, and drugs than before. While some benefits appeared more prominently at the six-month mark and others at the one-year checkpoint, the overall effects remained positive.

One participant, 22-year-old Aeryn Hill from the West Midlands, described her time in care as mentally challenging and isolating, noting that her autism and other issues were not properly supported. After receiving the grant, she purchased a much-needed PC for her university studies and took her partner on a holiday, which she said brought significant improvements to her life. The study highlights the broader challenges faced by care leavers, a group more vulnerable to homelessness, unemployment, and involvement in the criminal justice system. The researchers recommend further trials to explore the effects of larger or repeated cash transfers and call on councils to consider unconditional financial support to improve young people’s transition out of care

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