Guaranteed Income Works: Data from Birmingham

Embrace Mothers participants reported better financial health than control group members did 6 months into the program. Guaranteed income caused a significant decrease in utility debt, with Embrace Mothers participants almost 20 percent less likely to have utility debt than were their control group counterparts.

When they applied to the program, only 7 percent of Embrace Mothers participants said they could cover a $400 expense using either cash or a credit card paid in full. Six months into receiving the guaranteed income, this percentage had increased to 24 percent, compared with only 11 percent in the control group. 

Both during and at the end of the pilot, substantially more Embrace Mothers participants reported they had $500 or more in savings.

Interviews with Embrace Mothers participants revealed that one of the most profound experiences of the pilot for them was their experience as mothers. With the guaranteed income, they prioritized their children’s well-being—from basic needs such as clothes, shoes, more food, and hygiene items (toothpaste, soap, menstrual products); to being able to provide treats and family experiences they had never been able to before; to investing in their academic, physical, and social development in extracurriculars and field trips. Being able to better provide for their children’s needs brought most Embrace Mothers participants deep satisfaction.

“[My daughter’s] been wanting [dance classes], but I just couldn’t afford it. And so now, just not being able to say no as much is really a big thing for me, especially when it comes to my kids, because I want to give them everything. I just—I couldn’t. And I still can’t give them everything, but I can give them a little bit more.” - Tiffany

Qualitative and quantitative evidence shows that Embrace Mothers appears to have helped participants better align their childcare arrangements and work, allowing them to be more present and available to their children. Guaranteed income allowed them more choice in the type of job, schedule, and number of hours committed to it. The monthly income gave them the resources and space to find work that better suited their children’s developmental and emotional needs. 

Mothers who continued to work throughout the pilot experienced significantly fewer issues at work due to childcare challenges—a key component of the theory of change envisioned by the City in targeting guaranteed income to single mothers. 44 percent fewer Embrace Mothers participants reported having been late for work in the past month due to childcare issues than did control group members (19 percent versus 36 percent). Similarly, more Embrace Mothers participants were able to maintain full-time employment and pursue new job opportunities than were control group members in the past year. Embrace Mothers participants also reported missing fewer hours of work due to childcare than did the control group. 

For example, participants Chloe and Mariah both cut back their work hours while still working full-time. For Chloe, this meant reducing her daily hours from 12 to 8, which allowed her to pick up her son from childcare more and spend more time with him. Mariah was able to cut back from her three jobs to a single better-paying job that made it possible for her to spend time with her daughter.