Pioneering project gave Prague homeless CZK 100,000 to start a new life

A pioneering Czech study has found that providing homeless individuals with a one-year unconditional grant of CZK 100,000 significantly improves their chances of finding stable housing and employment. The project, titled "New Leaf Czech Republic," is only the second of its kind in the world, following a similar experiment in Canada.

Melanie Zajacova, chair of the Department of Social Work at Charles University’s Faculty of Arts, presented the preliminary results in Prague on Monday.

The study tracked 100 participants beginning in late 2024 to test whether direct financial support or intensive social work could break the cycle of homelessness more effectively than standard state services.

The findings challenge common public misconceptions regarding how people experiencing homelessness manage money.

Contrary to fears that the CZK 100,000 sum would be wasted, researchers found that participants primarily spent the funds on food, housing, and clothing. In the first month, those receiving the grant spent CZK 6,000 more on housing and CZK 10,165 more on clothing compared to those in the control group.

"No one spent the donated sum immediately," Zajacova confirmed. While alcohol and drug expenditures remained low across all groups, those paired with a dedicated social worker saw the most significant decrease in substance spending, dropping to an average of CZK 70 on alcohol and CZK 50 on drugs per week after one year.

Employment rates also saw a marked increase. At the start of the project, only half of the participants had jobs. By the end of the year, 80 percent of those with the 100,000 CZK grant were working.

Those receiving social worker support saw their average monthly income rise to CZK 15,250, a notable improvement, though Zajacova noted this remains far below the Prague average salary of CZK 65,000.

Housing stability proved to be the most vital metric. While 87 percent of those with financial support found housing early on, only 40 percent retained it after a year.

In contrast, 80 percent of those who worked with a social worker maintained their housing over the long term, reporting significantly higher levels of mental well-being.

The project cost CZK 12 million, funded in part by the Ministry of Labour and Social Affairs and the European Social Fund. Researchers are now calculating the total economic savings for the state, with full results expected in September.