The “New Leaf Project” is a pioneering initiative jointly run by the Vancouver-based charity Foundations for Social Change and the University of British Columbia. In this study, 115 homeless individuals aged 19 to 64—who had been homeless for an average of six months at the start—were invited to participate. Out of this total group, 50 people were randomly selected to receive 7,500 Canadian dollars each (roughly 20,000 PLN), with no restrictions on how the money could be spent. The goal was to examine whether direct financial assistance would help recipients improve their living situations.
Over the course of 12 to 18 months, researchers monitored these 50 participants and compared their progress to a control group that did not receive any funds. Contrary to stereotypes suggesting that such cash transfers might be misused, recipients largely chose to invest in essentials and long-term stability. Many secured housing more quickly, paid for critical repairs on cars or purchased bicycles to travel to work, and even managed to save an average of about 1,000 Canadian dollars over the year. Spending on alcohol, cigarettes, and drugs decreased by about 39% compared to the control group, while expenditures on necessities like food, clothing, and rent went up.
Beyond these immediate personal benefits, the project also highlighted potential public cost savings. Participants spent fewer nights in shelters—reducing shelter costs by about 8,100 Canadian dollars per recipient per year, which adds up to substantial savings when multiplied across all 50 individuals in the cash-transfer group. Claire Williams, CEO and co-founder of Foundations for Social Change, notes that people experiencing homelessness typically know their needs best but lack the means to address them. By providing no-strings-attached financial assistance, the initiative empowered participants to make decisions that helped stabilize their lives and, in turn, lowered expenses for support services.
While homelessness is a complex social issue, this study suggests that direct financial support can be an effective tool for many individuals on the verge of, or already experiencing, homelessness. Steve Berg, Vice President of the National Alliance to End Homelessness, emphasizes that, for some, simply having the means to afford a security deposit or car repair can be the difference between stable housing and sleeping on the street. Globally, around 2% of the population (about 150 million people) experiences some form of homelessness, a number that has been exacerbated in recent years by events like the COVID-19 pandemic. The “New Leaf Project” provides evidence that direct cash transfers could be part of a larger strategy to tackle this widespread problem
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