Guest blog: Card is the New King – The Financial Challenges of Rough Sleeping

Rough sleeping brings a number of challenges from figuring out where to sleep to where the next meal is coming from, however the reality goes much deeper.

A lack of a home isn’t just a lack of having somewhere warm and safe to sleep; not having a home means no proof of address and no consistent electricity or Wi-Fi connection. All of which creates huge challenges for those having to navigate survival on the streets in an increasingly digital world. 

Without valid identification, such as a utility bill, it can be difficult to do basic things like open a bank account. Many banks require one form of photo ID and one proof of address, which those who are rough sleeping are unable to provide. Although some banks will allow other forms of address verification such as a letter from a professional confirming the person’s identity, this can be inconsistent depending on staff training or fear of getting it wrong given strict banking regulations. For photo ID, many rough sleepers carry their life in bags at all times, making it easy for small cards or passports to get lost or ruined by the rain, creating a new expense of replacing them. Given bank account details are required when starting a new job, this limits the work available to rough sleepers to lift themselves out of their situation. Alternatively, it puts them at higher risk of exploitation by taking up ‘cash in hand’ jobs, meaning employers may pay less than minimum wage or withhold payment knowing the employee has limited options.

For those without a bank account, there is the Payment Exception Service in which recipients can receive payments such as Universal Credit in cash. This poses its own issues, for example loss, theft and having to get by in an increasingly cashless world. For those on a reduced income, every penny counts but a number of services, for example bus travel, often offer a lower cost when booking online in advance compared to buying on the day. A one-day ticket with First Bus in the Glasgow City Zone costs £6.30. However, buying a bundle of 5 one-day tickets on the app costs £22 - bringing the cost down to £4.40 per one-day ticket. While this is beneficial to everyday commuters, for those without a bank account or a debit card, they have no option but to pay the day-by-day costs. This can also be seen with hotels and hostels, many of which charge a lower rate when booked online compared to paying when checking in. Hotels and hostels also typically require having a credit card on file, in the event of additional charges, further limiting options. By having to pay more for essentials such as bus travel or hostels due to not having a bank account or an option to pay in advance, this continues to keep those experiencing homelessness at a disadvantage.

However, it’s not just the lack of ID that can cause financial difficulties, but the lack of consistent access to the internet and electricity. With the Department for Work and Pensions moving to a predominantly digital process, this puts those without regular internet access at a disadvantage. Since moving to an online system, those receiving UC are updated via their ‘journal’, which tracks appointments, tasks to be completed and any important messages. While this makes it much easier for some, it also makes things far more difficult for others, such as rough sleepers who lack a consistent electricity supply. A phone is only as useful as its charge and for many, finding somewhere to charge a phone without spending money is a challenge. Although libraries are open and typically offer free Wi-Fi, a majority are closed on Sundays leaving nowhere except cafes which typically require something to be purchased in order to stay for a little while. Last-minute changes to appointments such as time changes, cancelling or switching to a Teams meeting mean the most disadvantaged in our community are at the highest risk of UC sanctions for things outwith their control.

The move towards a cashless and digital world is growing at a rapid pace on the assumption that ‘surely everyone can do it by now?’. This does make things much easier for those of us who can tap our phones to pay for a bus or a coffee, but makes it near impossible for people who don’t have access to a bank account. Additionally, for those trying to survive on the streets on Universal Credit payments, every penny counts so bulk buying discount bus tickets means tying up money that could be used for food immediately. Hopefully with improved policy and support, such as the Financial Exclusion Strategy launched by the Government in 2025, these barriers will begin to break down.