Delivering an unconditional cash transfer (UTC) to young people leaving council care could help them secure stable housing, research has revealed.

According to a trial involving 302 care leavers aged 18-25 across nine councils, the participants that were given a one-off cash sum of £2,000 were less likely to be ‘sofa-surfing’ than the remainder of the group.

Participants that received the payment were found to be more likely to experience housing security six months after the trial, as well as seeing improvements in financial wellbeing, health outcomes, and feelings of social connectedness compared to their peers.

Those who were given the unconditional payment were also less likely to be arrested or have a criminal conviction one year later. However, both groups’ base rates of criminal justice contact were already low, the research confirms.

The local authorities included in the study were Birmingham, Bolton, Camden, Rochdale, Salford, Stockport, Walsall, Warrington, and Warwickshire, with the trial being funded by the Centre for Homelessness Impact and the Cabinet Office Evaluation Task Force. It received approval from the ethics committee of King’s College London.

Professor Michael Sanders, Director of the Experimental Government Team in the Policy Institute, King's College London, said that the trial results are ‘encouraging’.

He explained that the effects on housing outcomes decrease over time, indicating that the amount transferred may not be adequate to ensure ‘durable effects’ in this area.

‘But even so, these results highlight the potential benefits of conditional cash transfers, which are not only easier and cheaper to administer than other types of interventions, but also allow recipients more agency and dignity, recognising they themselves are usually best placed to make decisions about their lives’, said Professor Sanders.

Dr Ligia Teixeira, Chief Executive of the Centre for Homelessness Impact, added: ‘Policymakers and local authority leaders should consider direct financial support for young people leaving care, with no strings attached, as a policy tool and a practical way of helping their transition to independent living.’