A newly released study of Birmingham’s guaranteed income program for single mothers shows the program was a success, the city announced this week.
The Embrace Mothers guaranteed income pilot program, which ran from February 2022 through February 2023, resulted in improvements in recipients’ financial wellness, more parent-child time, decreased work performance issues related to childcare, and increased educational aspirations, the study showed
The program picked 110 single mothers in Birmingham to receive a guaranteed $375 monthly income for a year. The program provided money from private contributions, not from taxpayer money.
A randomized control trial included an additional 132 control group participants who were also single mothers in Birmingham but did not receive guaranteed income.
The study found the program improved financial health for families. Embrace Mothers participants reported better financial health than control group members did, with less utility debt, a better ability to cover a $400 emergency expense, and higher contributions to savings.
The program also allowed participants more choice in the type of job, schedule, and number of hours worked, allowing them to be more present and available to their children, the study said.
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.
The study also said being able to better provide for their children’s needs brought most Embrace Mothers participants deep satisfaction.
With the guaranteed income, they prioritized their children’s well-being—from basic needs such as clothes, shoes, more food, and hygiene items such as toothpaste, soap and 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.
