Researchers are conducting the UK’s first major scientific trials to establish whether giving homeless people cash is a more effective way of reducing poverty than traditional forms of help.

Poverty campaigners have long believed that cash transfers are the most cost-effective way of helping people, but most studies have examined schemes in developing countries.

The new study, funded by the government and carried out by King’s College London (KCL) and the homelessness charity Greater Change, will recruit 360 people in England and Wales. Half will continue to get help from frontline charities. The other half will get additional help from Greater Change, whose support workers will discuss their financial problems then pay for items such as rent deposits, outstanding debts, work equipment, white goods, furniture or new clothes. They do not make direct transfers to avoid benefits being stopped due to a cash influx.

Professor Michael Sanders, who runs KCL’s experimental government unit, said: “What we’re trying to understand is the boundary conditions for cash transfers. When does it work? For whom does it work? What are the amounts you need to give people in order to make it work?”

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