Homeless people were given lump sums of cash. Their spending defied stereotypes.

Efforts to alleviate the growing crisis of homelessness typically avoid putting money directly in the hands of the unhoused, reflecting the stigma that it will be misused. But new research challenges that perception, suggesting that when some homeless people are given cash, they are likely to put it toward essentials such as housing, furniture and transportation.

Researchers at the University of British Columbia, in collaboration with Vancouver-based charity Foundations for Social Change, provided a lump sum of 7,500 Canadian dollars in 2016 (about $5,540 today) to 50 people experiencing homelessness in Vancouver. They found that the recipients spent fewer days homeless, increased their savings and put more money toward essentials compared with a control group of 65 people who received no cash transfer.

The study, which was published in the peer-reviewed PNAS journal this week, followed individuals for one year after they received the lump sum and reported no increase in spending on what researchers call “temptation goods,” defined as alcohol, drugs and cigarettes. By decreasing time spent in shelters, the intervention led to a decrease in public spending of about $574 per person, the paper said.

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