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Study: £2,000 Grant Improves Care Leavers' Lives
16 Mar
Summary
- Care leavers receiving a £2,000 grant showed reduced homelessness and hospital stays.
- Participants reported improved well-being and optimism after receiving the funds.
- The study suggests cash transfers offer dignity and agency to recipients.

A recent study by King's College London has demonstrated the positive impact of a one-off £2,000 grant on young people leaving the care system. Participants who received the unconditional cash transfer were found to be less likely to experience homelessness, imprisonment, or hospital stays. Furthermore, their overall well-being, including optimism and coping abilities, saw notable improvements.
The research, which involved 302 individuals aged 18-25 across nine English local authorities, tracked outcomes six and twelve months post-grant. Those receiving the funds reported increased housing stability and fewer instances of sofa-surfing. Interestingly, recipients also consumed less alcohol, tobacco, and drugs, spending 12% less on these items.
Researchers highlighted that direct cash transfers, like the one studied, not only proved easier and cheaper to administer than other interventions but also afforded recipients greater autonomy and dignity. This approach acknowledges that individuals are often best positioned to manage their own needs and make beneficial life choices. A previous parliamentary inquiry had underscored the substantial challenges faced by care leavers, with a third becoming homeless within two years and a quarter of the prison population having spent time in care.




