Scientists in the Czech Republic have conducted an experiment to address the issues faced by unhoused people, by providing participants with CZK 100,000 for a year with no conditions and instructions, and another group with specialist support from a social worker. The experiment is the second of its kind in the world, following a previous scheme in Canada.
Research team head Melanie Zajacova, chair of the Department of Social Work at the Faculty of Arts of Charles University, presented the preliminary results of the New Leaf Czech Republic project today.
The study found that the situation of people in both groups improved, as most found jobs and housing. For those who had support from a professional, the return to normal life was more sustainable, and mental well-being was also greater. No one spent the sum of money immediately.
The Czech researchers were inspired by an earlier Canadian project, which demonstrated that people who received a cash grant spent less time on the streets and in shelters, and most found stable housing. Canadian researchers also calculated the savings in service costs.
The Czech team is now calculating the economic impacts of the project, and the results will be available in September.
The Czech project is verifying the average annual costs per unhoused person and the effect of unconditional income and social work. It also aims to refute the common misconception that people are homeless by choice, do not want to work, and just get drunk, Zajacova explained.
The project designers began searching for participants in June 2024. Eligibility requirements included Czech citizenship, living on the streets for less than 2.5 years, and being free of mental illness and substance abuse. The one-year project then began in December 2024.
A total of 40 people received CZK 100,000 with no conditions, another 20 were assigned a dedicated social worker, and the remaining 40 received standard social services under the existing conditions. “66% of the participants remained in the programme until the end, which was a success,” said Zajacova.
The average participant was 45.5 years old, and homeless for 20 months. One-third of them were women.
Compared to the others, the people who received CZK 100,000 had the highest expenses in the first three months. The idea that they would spend everything immediately was not confirmed. “People spent the most on food, housing and clothing,” Zajacova said. Compared to the group living under the current conditions, they spent CZK 1,858 more on food, CZK 6,000 more on housing, and CZK 10,165 more on clothing in the first month.
At the start of the project, participants spent an average of 200 crowns per week on alcohol and 205 crowns on drugs. After a year, those who received support from a social worker spent an average of 70 crowns on alcohol and 50 crowns on drugs per week. People who received the CZK 100,000 did not spend any of the money on drugs, and spent an average of 311 crowns per week on alcohol after one year.
At the start, half of the participants had jobs, with an average income of CZK 10,161. After a year, 80% of the people who received the money were working, earning an average of CZK 11,500. 60% of the group receiving social work support were working, with an average of CZK 15,250 monthly.
“The average salary in Prague is CZK 65,000,” noted Zajacova. “With the support of social work, people reached CZK 15,250. But the joy is rather bitter. It’s better than CZK 10,000, but much less than the Prague average.”
At the start of the experiment, 87% of people with financial support and 46% of those with social worker support found housing. After a year, 80% of the social worker’s clients and 40% of those with financial support retained their housing. People with the social workers’ support managed to significantly improve their mental well-being. Zajacova noted, however, that the social workers were not acting as therapists.
The researchers now want to focus on testing social work outside of Prague and in other social services as well. They also want to focus on reducing the administrative burden, and have developed an artificial intelligence module for social workers. “Social work is among the professions that AI cannot replace… It is a specific field and approach,” Zajacova said.
The project cost CZK 12 million. The Ministry of Labour and Social Affairs provided CZK 3.5 million from the European Social Fund until last June. After that, the project researchers have had to secure funding elsewhere.
