By Robert Nellist, Welfare Service Manager at LB of Barking and Dagenham
The “cash-first” approach is a simple but revolutionary shift in how we tackle poverty: instead of giving people bags of food or vouchers for specific items, we give them the money they need to buy what they actually need. While critics often fear this leads to waste or dependency, a mountain of global evidence suggests these fears are rooted in outdated stereotypes rather than reality. To truly support our residents in crisis, we must trade our misconceptions for a model built on dignity and efficiency.
With the launch of the new £1 billion Crisis and Resilience Fund (CRF) in England this month, this model is moving from the fringes of experimental pilots to the heart of national policy by embedding a “cash-first, not cash-only” policy nationally across England.
The shift toward cash-first is frequently met with a familiar fear: the “temptation goods” myth. Sceptics worry that cash will be squandered on alcohol or tobacco. However, global research from the World Bank and organisations like GiveDirectly consistently debunks this. In over 30 studies, when people are given direct financial support, spending on “vice” goods typically stays the same or decreases. Why? Because poverty is inherently stressful. By alleviating the immediate panic of how to pay the rent or buy shoes for a child, cash improves mental well-being and reduces the “scarcity mindset” that often drives impulsive coping mechanisms. Similarly, the fear that cash breeds “laziness” is a ghost of the past. Evidence from seven major trials found no proof that direct transfers discourage work. Instead, as seen in the Scottish Government’s Cash-First Programme, money often acts as a bridge back to employment, covering job required certification, photo identification, interview clothing, haircut, travel pass or work boots that a food parcel cannot provide. Food banks, while vital in an emergency, force individuals to accept whatever is in a pre-packed parcel, regardless of dietary needs, cultural preferences, or basic taste. The cash-first approach offers a level of dignity that in-kind aid simply cannot.
Central to this debate is the toxic weight of stigma. For those with lived experience of poverty, seeking help is often a gauntlet of shame. Standing in a visible queue for a food bank or presenting a restricted voucher sends a public signal of “failure.” This “poverty premium” is psychological; it strips away agency, forcing a person to accept whatever brand of cereal a stranger has chosen. This visibility breeds an “otherness” that traps individuals in a cycle of isolation.
Local authorities have proven within the correct framework “cash first approach” can and does work. In the London Borough of Barking and Dagenham, a hardship grant pilot showed that 99% of recipients used the cash exactly as intended—for food, utilities, and essential household items. Following the success of its initial pilot the “cash first approach” was adopted not only within the Welfare Service administering the range of available discretionary financial support such as Local Welfare Assistance and Household Support Funding but was utilised to issue the various COVID related schemes such as “Test and Trace” payments and then cost of living “energy support” payments and has now been adopted across the wider local authority ranging from children and youth services, NRPF and front line advice and support desks. They have further widened this approach to integrate alongside “Crisis Payments” the inclusion of “Resilience Services”—like debt advice, income maximisation, into work and/or better employment support which is further strengthened by their using of data to identify those at risk across a range of demographics and a targeted program of tailored support offered with the aim of prevention.
Finally, cash-first is more efficient. Cash can be delivered instantly via bank transfer, payment by text, bank transfer to utility accounts or pre-paid cards, ensuring that 100% of the support goes directly to the person in need. A cash-first model empowers the individual to be a consumer in their own community. It allows a parent to walk into a supermarket and choose the specific cereal their child likes or buy fresh vegetables instead of tinned goods. This isn’t just about nutrition; it’s about agency. We acknowledge that the primary problem of poverty is a lack of money, not a lack of character. When we trust people with the resources to manage their own lives, we don’t just provide a meal—we provide a path back to independence and treat the person in crisis as a capable adult rather than a passive recipient of charity, we stop managing poverty and start solving it.
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