In a recent article, I wrote about research showing how universal basic income can boost the happiness levels of the poorest members of society because it removes a large element of stress from their lives. A recent study from the University of New South Wales suggests that it can be similarly effective at reducing homelessness.

The researchers highlight how a combination of the rising cost of living and employment insecurity is expanding the profile of people at risk of homelessness. The authors believe that a universal basic income would help to over many of the policy shortcomings aimed at tackling homelessness.

“Evidence shows our current responses to homelessness are failing. We put more and more money into homelessness services and yet, overall, homelessness continues to rise,” the researchers explain.

“This is a sign we have to do something different in our approach to homelessness. A universal basic income policy could be part of a new and more effective solution, which could help address some of the structural issues that lead to homelessness.”

Unconditional support

UBI has significant support in large part because of its unconditional nature. It’s increasingly popular as an answer to the growing socioeconomic insecurity seen in recent years, with various pilot projects run around the world.

“A UBI is an opportunity to transform the logic of our welfare system and begin addressing the structural causes of poverty and homelessness. Implementing a UBI could help address the ‘income side’ of the housing crisis driving homelessness. But it would need to be coupled with other policies such as rent controls and increases to social housing supply,” the authors explain.

The authors argue that current policies are not doing a sufficiently good job at tackling the problem, not least because they only provide temporary support that only really kicks in when people have already been failed by the housing and labor markets.

“Current policies only really provide targeted support to people once they’re already experiencing homelessness or are at imminent risk of homelessness. This is the opposite of universal measures, like a UBI, which ensure that everyone’s basic needs are met, thus helping prevent homelessness risks from emerging,” they explain.

Systemic problems

By using a targeted approach, it supposes that someone becoming homeless is a result of the personal circumstances of the individual involved. It overlooks the fact that homelessness is primarily a housing issue.

The researchers believe that the issue will only really be solved when targeted measures are combined with universal policies that help to better address the structural factors underpinning homelessness, such as the shortage of affordable houses.

The preponderance of targeted support can also create a real stigma for those who rely on it. Indeed, it can create an implicit assumption that their circumstances are their own fault rather than the outcome of more systemic problems.

“If a person seeks support from a homelessness service because their rent’s gone up, but all that service can offer is financial counseling or mental health support, that person will likely feel like they’re the problem,” the researchers explain. “This can be a really stigmatizing experience and can lead to people avoiding reaching out for support.”

UBI can help to overcome this stigma because it doesn’t make support conditional. It also helps to tackle the structural issues in terms of the inability of people to afford housing.

“Receiving UBI payments won’t be a stigmatizing experience because payments are offered to all,” the authors conclude. “If everyone is receiving a basic income, then no one can be marked out as different or deficient.

“Also, if payments are universal, then there’s no need for a massive, inefficient bureaucracy that only exists to monitor people in order to make sure they only receive what they are entitled to.”