New data released this week by Camp Harbor View show that direct cash payments to Boston families are having a transformative impact on nearly every aspect of their lives.
The Boston Globe covered the new data in an article on Nov. 8th — read it here.
It has been just over a year since two nonprofits, Camp Harbor View and UpTogether, teamed up to launch a privately funded $800,000 guaranteed income pilot program. The program provides 50 Boston households $7,000/year for two years, distributed in monthly payments of $583. These families are able to use the funds however they choose and do not need to pay it back.
Evaluations of survey data from the first year of the program provides strong evidence that cash payments to families helps them relieve economic stress, achieve stability, and invest in growth. The pilot also tracks a group of families who are not receiving funds in order to understand the qualitative and quantitative impact of the pilot.
Initial data show that:
- Families receiving the payments are 40% less likely to have unmet household needs than the group not receiving payments (eg. child care, heating costs, or dental care)
- During the first year of the pilot, families receiving payments reduced their risk of distress by 23%, while families not receiving payments had an 11% decrease.
Families receiving payments are more likely to…
- Be able to pay bills
- Save money consistently
- Have over a month’s worth of income saved for an emergency
- Pay for household needs like transportation, groceries, and childcare
Tierra Lyons, a parent in the program, said joining the program was a “no brainer” and that the monthly income has helped to stabilize her family’s finances and allowed her to save toward a down payment for a house.
“I had just never experienced this level of radical generosity. Now I can put all of my time, my energy, my resources into just supporting my family because I know that I’m supported as a parent,” Lyons said.
Camp Harbor View Executive Vice President Lisa Fortenberry said the early results are very encouraging — but not surprising.
“It’s an idea that seems too obvious to be as groundbreaking as it is,” said Camp Harbor View Executive Vice President Lisa Fortenberry. “People know what they need to support a healthy family, and with trust and partnership, they can make changes that lead to better physical and mental health, better housing, and education and career paths.”
Jan 2024 update: For numbers and insights from two-year pilot, see our full report on Direct Cash for a Better Boston.