Reaching the most vulnerable: assessing Minimum Vital Income coverage among people experiencing homelessness

Cite: Adrián Cabrera, Sonia Panadero & José Juan Vázquez (03 Jun 2025): Reaching the most vulnerable: assessing Minimum Vital Income coverage among people experiencing homelessness, Applied Economics Letters, DOI: 10.1080/13504851.2025.2515284.

The challenge of homelessness and the role of minimum income schemes

Homelessness has emerged as a pressing social issue across Europe in recent decades. Despite notable economic and social advancements, the housing crisis has deepened in many European countries, contributing to a worrying rise in residential exclusion. Today, at least 895,000 individuals across Europe are affected by homelessness in its most visible forms, highlighting the scale of the problem.

Spain is no exception to this trend. Homelessness has become an increasingly urgent concern, prompting the Spanish Government to adopt a National Homelessness Strategy (Estrategia Nacional para la Lucha contra el Sinhogarismo en España 2023–2030). This long-term plan reflects a clear commitment to preventing and ultimately eradicating homelessness. However, recent data indicate that the phenomenon continues to expand: in 2022, 28,552 people were experiencing homelessness in Spain — a 25% increase from 2012.

Public policies can play a decisive role in addressing this challenge. In this context, the Spanish Government introduced the Ingreso Mínimo Vital (hereinafter, IMV), a guaranteed minimum income scheme designed to prevent poverty and social exclusion among vulnerable groups. Among its priority targets are adult women who are victims of gender-based violence, survivors of human trafficking or sexual exploitation, and individuals experiencing homelessness.

What objectives does the work pursue?

This study pursues two main goals. The first aim of this research is to assess the access of the IMV among the population experiencing homelessness in Spain. Specifically, it will examine its impact in Madrid, a region with high population density and increasing incidence of homelessness. 

The reasons for the non-take-up of this benefit have important implications for social policy, as many overlapping factors — administrative, legal, health-related, or social — may collectively undermine effective delivery. Therefore, the second objective is to identify the potential factors affecting the non-take-up of the IMV within this population. Addressing these obstacles is essential for designing more effective and equitable mechanisms to protect the most vulnerable and to close gaps in coverage.

Methods

To achieve these goals, data were collected from a sample of people experiencing homelessness (n=355) interviewed in the city of Madrid (Spain). The interviewed individuals represented various categories defined by the European Typology on Homelessness and Housing Exclusion. Specifically, participants were included if they had slept rough the previous night, were staying in a shelter or similar facility, or were accommodated in specialized housing programs (such as Housing First or Housing Led). This approach guarantees a comprehensive view of the various accommodation and support contexts within the homelessness spectrum, allowing for a more nuanced understanding of the experiences under study. 

The first of the two objectives of this study have been conducted through an initial exploratory and descriptive statistical analysis. We determined the percentage of participants receiving the IMV, along with a detailed characterization of the group. Regarding the second objective, the determinants of the non-take-up of the IMV have been investigated using a logistic regression model. The dependent variable takes the value '1' if the participant has received the IMV and '0' otherwise. As explanatory variables, various socio-demographic aspects, the participant's dwelling situation, health issues, social aspects, potential race-related discrimination situations, time spent in homelessness situation, and the number of times the participant has been in a homeless situation will be included. 

Results

Table 1 presents the descriptive statistics of the group of people experiencing homelessness, as well as the marginal effects and confidence intervals derived from the logistic regression.

First, it is noteworthy that only 10% of the sample received the IMV. Considering that people experiencing homelessness are a potentially eligible group for this benefit, this figure is certainly revealing. The second column of Table 1 shows the marginal effects of the logistic regression and their associated probabilities. The first noteworthy point is that independent variables related to nationality, type of dwelling, serious or chronic illness, marital status, race, and length of homelessness are statistically significant. This implies that these factors influence the likelihood of receiving the IMV. In contrast, factors such as gender, age, or substance misuse do not appear to have a significant relationship with the receipt of this benefit.

Regarding nationality, the analysis reveals that individuals with Spanish nationality are 6 percentage points more likely to receive the IMV. This result was expected since one of the requirements to access the benefit is residency in Spain. On the other hand, individuals who spent the night in a homeless care facility are more likely to access the benefit (up to 4 percentage points). In many cases, these resources provide assistance from social workers or specialized personnel who help with administrative tasks that would not be possible while living on the streets. In contrast, individuals who report suffering from a serious or chronic illness exhibit a 9 percentage point lower probability of receiving the benefit. One might expect that, due to their situation, they would access other non-contributory benefits, which could disqualify them from receiving the IMV. However, the reality is that only 5% of people experiencing homelessness have received a disability pension, and 6% have received some other type of non-contributory pension.  

Regarding marital status, separated or divorced individuals show a 5 percentage point higher likelihood of receiving the IMV compared to other statuses. In contrast, non-white individuals—typically foreign nationals—are 5 percentage points less likely to receive the benefit. Finally, a longer duration of homelessness is associated with an increased probability of accessing the IMV, specifically by 4 percentage points.

Conclusions, Limitations, and Future Directions

The results of this study highlight the limited impact of the benefit: only 10% of the sample receives this aid, which considerably restricts its potential positive effects. As observed in previous studies conducted on the general population, such benefits are clearly insufficient to mitigate the risk of poverty. Indeed, there is a need for a redesign of this schemes to better coordinate existing benefits, and in order to prevent new forms of poverty and respond effectively to emergency situations.  

Focusing on the factors affecting the non-take-up of the benefit, we identified nationality, type of dwelling, health conditions, marital status, race, and time spent in homelessness as the main drivers. Nationality, marital status, and race (linked to nationality) point to legal or bureaucratic barriers. Regarding the importance of accommodation type, spending the night in a shelter or another facility for people experiencing homelessness implies access to resources that would be unavailable while living on the streets. Among others, contact with social workers and specialized staff is crucial, as they provide comprehensive support that goes beyond material assistance. In many cases, their role includes direct intervention to ensure access to essential services, as well as guidance in processes of social and labour inclusion.

While benefits like the IMV are essential, their limited amount and the complexity of the application process often render them inaccessible to those in more precarious situations. Lack of information, and digital and bureaucratic barriers result in the exclusion of potential beneficiaries. Nevertheless, the presence of strong social support systems, including targeted interventions such as the Housing First model, has demonstrated a positive effect on access to the IMV, highlighting the importance of integrated and person-centred approaches.

This study contributes to the growing body of literature aimed at informing and improving the design of public policies targeting the most vulnerable groups. However, certain limitations should be acknowledged. In particular, the study focuses exclusively on the city of Madrid. A future line of research involves extending the analysis to the national level, thereby enabling comparisons with other contexts and scenarios in Europe.