US city is planning to give homeless people $12,000 each cash with no strings attached

Denver will become one of the first US cities to launch a guaranteed income scheme for homeless people.

Dubbed the Denver Basic Income Project, the much needed initiative was set up by one dedicated resident, Mark Donovan, and the Mayor's office.

As part of the scheme 'monthly unconditional payments' will be made to citizens without a home.

Sean Pavone / Alamy Stock Photo

The project is set to help those most in need and facing 'multiple sources of oppression' as a result of their race, class, gender identity, sexual orientation, religion, and other identity markers.

So, how exactly will the scheme work?

Well, the scheme is set to divert over $2 million in funds from the American Rescue Plan Act to those eligible, with some able to claim $1,000 a month for 12 months.

Speaking about the necessity of the project, the founder Donovan said: "Our society can do better.

"Direct cash payments move toward eliminating wealth inequality and begin to build a healthier community here in Denver and hopefully we’ll create a model for other cities to follow."

True to his vision, the initiative was launched with a single seed donation by Denver, who felt it was necessary to take action today to have an immediate impact on those who are suffering.

Ed Endicott / Alamy Stock Photo

The partnership was made with the Mayor's office to roll out this year, with Mayor Hancock saying of the ground-breaking work: "Homelessness, income inequality, a hollowed-out middle class, an alarming disparity in access to opportunity, and the challenges of mental health and poverty all stem from a lack of equity in our economic systems.

"The Denver Basic Income Project is an opportunity to explore how the philanthropic community and the private sector can augment public support for those living in poverty, particularly our unhoused neighbours, and extend that hand up to stability."

UPI / Alamy Stock Photo

It's hoped that the monthly cash payments will give those most vulnerable time to find full-time employment, which is expected to have hugely positive repercussions on the local community.

As the Impact Report from the New Leaf Project study found: "Moving into housing provides stability, reduces the risk of trauma, improves health, and frees up shelter beds for others in need.

"Cash transfer recipients prioritised and increased spending on recurring staples like housing/rent, food, transportation, and utility bills. They also saw a 39 percent reduction in spending of goods such as alcohol, drugs or cigarettes."

If you've been affected by any of these issues and want to speak to someone in confidence, contact Shelter via their web chat service or on 0808 800 4444. The line is open 8am-8pm Monday to Friday and 9am-5pm Weekends and Bank Holidays.