Cash Assistance

Getting money into the hands of the people who need it takes some coordination.

Here’s our step-by-step guide on how we give cash assistance to older people around the world:

1. Fundraising: Before we can give any cash to anyone, we first need money to give! This is where fundraising comes in. We work hard to raise funds from the UK government, trusts and foundations, and the UK public to help support cash assistance programmes.

2. Selection: For long term work, our partners spend decades building relationships with communities, enabling us to talk to community leaders and map out exactly who needs funds. In emergency situations this process needs to be a lot quicker, and often UN agencies, NGOs, and INGOs come together to coordinate around a support response.

3. Giving the money: We support local communities to find the most effective way to give cash. Often a distribution point will be set up within a village, where selected older people gather to receive a bank transfer, cash, or vouchers.

4. Spending the money: In the case of vouchers older people can exchange vouchers with local traders for goods, and we pay the vendors for those goods. With physical cash and bank transfers the recipients can spend the money how they wish!

5. Monitoring: After the cash has been given, we listen to the community on how money was spent. This allows us to learn whether it's met the most pressing needs. It also gives people a chance to raise concerns, including if anyone was excluded who shouldn’t be!

Cash transfers can transform the lives of older people living in difficult situations, however giving cash does not come without challenges. Here are just some of the factors to consider, when developing a cash-based programme.

• Digital literacy: Sometimes the most at-risk individuals might not have access to digital banking, which limits the ways in which cash can be given. This is particularly a challenge with older people in remote areas.
• Markets: If local markets aren’t operating - for example, if shops are destroyed in a flood, then older people won’t be able to spend the cash. 
• Inflation: There is a risk of inflating the price of basic goods if there's suddenly more demand than supply. This can create a scenario where traders push up prices making goods unaffordable.
• Safety:  Giving cash, particularly physical cash, can put recipients in a vulnerable position. Physical cash can often be targeted for theft, and even digital transfers are at risk of being taken by family members. This is particularly a challenge for older women.
• Funding: There is often a shortage of funds to give everyone what they need. For example, in Ukraine, nearly the whole population has been affected by the war. This means a lot of older people need help, and so a lot of money is needed. And that can be a challenge if there's not enough of it.

To address these challenges, we support partners to engage local communities, and to assess the local context. This ensures that older people are safeguarded from any risks, and that cash support is the most appropriate response. We also liaise with UN agencies and other organisations to ensure responses are effectively coordinated, and that cash support is at a level that will have a meaningful impact for individuals and communities.

We recognise that providing cash is not always sustainable. We therefore strive for structural change, supporting governments to provide pensions and improve facilities. And, of, course, we continually work to raise funds so there is money to give in the first place.

Cash assistance is pivotal in providing support to older people around the world. It offers agency, autonomy and dignity. There are challenges to overcome, but with support from governments, donors, and our partners, we can help make a difference.