Can Free Cash Help Beat Homelessness?

Published 29 August 2025 by Lee O'Connor

Can giving people experiencing homelessness free money really work?

Recently, The Big Issue reported on a government-backed trial that gave former rough sleepers direct financial support while living in temporary accommodation.

From a YMCA Together perspective, the trials are welcome. Piloting innovative solutions like access to personalised funding and the flexibility on how to spend it could be a positive step to shortening people’s stay in homeless services. But what might it look like if personalised budgets were rolled out more widely?

To some, the idea sounds risky. But our experience tells a different story.

YMCA Together’s Director of Homeless Services, Hayley Jones, weighs up the pros and cons.

Why Choice Matters

People who’ve been in the homeless accommodation system for a long time can be apprehensive about moving on. Being able to make choices, however small, can be a massive confidence boost to help people make those next steps.

As such, personalised budgets go beyond buying material things. They make people feel seen, heard, and understood. Crucially, these initiatives give individuals a voice and a say in their own future.

For those experiencing homelessness, who often face stigmatisation, the transformative power of trust cannot be overstated. It has the potential to restore dignity when it’s needed most.

The ability to spend a budget beyond prescriptive purchases matters, too.

Instead of saying, “You can choose from these furniture packages or limited options,” personalised budgets allow the support worker to sit with the person, listen to them, and advocate for what they feel will help ensure their move is successful.

That can be a powerful motivator for someone moving out of temporary accommodation and into the community.

Don’t Overlook the Basics

While personalised budgets have plenty of positives, we also need to be realistic. I loved reading about people spending their budgets on courses, laptops, and paying towards weddings.

However, we also need to consider people’s priorities. I’ve been into “ready to let” properties with no flooring. Most of us would take that for granted, yet for many of our residents, it’s a luxury to have that already in place.

So while it’s lovely to hear about people paying for training or celebrating milestones, there are key essentials that are being overlooked if people are to move on and stay out of homelessness.

Trust vs Control

One unanswered question from the trial is how they managed the selection process. I can’t imagine there’s money available for everyone if personalised budgets roll out across the country.

How would it feel if one of our residents got a personalised budget and another didn’t? What atmosphere would that create?

There’s also the question of who looks after the money. If the final decision sits with a support worker, some people might think, “Why am I not trusted to spend it myself?”

It’s a very nice offer, but it could come across as a parent/child relationship.

That said, having a support worker involved can help with admin like booking training courses and paying for classes and lessons.

Balance is key. Provided the support worker has built a strong relationship with the person and understands their needs, they can support individual choice while helping them sustain independence.

The Cost Question

Some people will worry about the cost. But we’re already committing a lot of money to temporary accommodation.

If a personalisation fund can bring someone out of that placement, or prevent them from going in altogether, then it’s not costing more money – it’s reallocating it more productively.

Instead of spending money on putting someone up in a B&B for six months, we could use those funds to give someone the chance to move on properly.

Redirecting funds in this way could reduce extended stays in the system and ultimately save public money.

Money Isn’t Everything

Of course, there are things money can’t buy. If someone has been homeless for a long time, they might also have a history of trauma. They may need longer-term support, recovery or counselling.

Cash can’t buy the community, connection, and friendship that some of our residents need to move forward. But you could use a personalised budget to give people access to places they can connect with others, such as a gym membership or a place on a course.

Strong relationships and support networks make a huge difference to those exiting homelessness. That’s why personalised budgets must sit alongside counselling, recovery services, and long-term support – not replace them.

So, can giving people experiencing homelessness free money really work?

Yes, if it’s used carefully. The trial shows that personalised budgets can give people a fresh start and a real shot at independence. They can also help clear arrears, cover deposits, or even pay outstanding fines that might be holding someone back.

Plus, the trials open up the possibility for support providers like us to help someone allocate their funds more creatively, addressing what they may need to move on, sustain their accommodation, and prevent them from coming back into the system.

But personalised budgets alone won’t end homelessness. The government has to increase funding for recovery services, mental health support, adult social care and support providers.

We’ve seen what’s possible when we put our trust in people. But trust alone isn’t enough – it must be backed with real investment in the services that help people rebuild their lives. This is the key to truly making a difference in the fight against homelessness.