$7,500 cash transfers reduced homelessness in Metro Vancouver, study finds

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$7,500 cash transfers reduced homelessness in Metro Vancouver, study finds
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Unhoused people given $7,500 spent the money on housing, clothing, food, transit and not on drugs and alcohol and some would believe.

Homeless people given a large amount of money don't spend frivolously despite public perceptions to the contrary, a new B.C. study has found.

Contrary to those predictions, the results of the B.C. study showed cash transfers actually helped reduce homelessness. Recipients spent an average of 99 fewer days homeless, increased their savings, and saved society an average of $777 each by spending less time in shelters. Public bias in need of correction One way to counter negative public bias toward unhoused people is to explain how they actually spend money, according to the researchers. Another option would be to emphasize the utility of cash transfers and the net savings they bring to society.

Rowan Burdge, provincial director of the B.C. Poverty Reduction Coalition, said research has repeatedly shown people experiencing homelessness and poverty make excellent decisions for themselves and their families when allowed to do so. Burdge said the UBC study upholds why raising the rates on income and disability assistance programs and providing people with basic economic security are effective and safe policy tools for reducing poverty and homelessness.

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