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Single Mothers in Birmingham See Benefits From $375 in Guaranteed Monthly Income

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Embrace Mothers guaranteed income pilot provided 110 Birmingham households led by single mothers with $375 a month for a 12-month period beginning in February 2022. (Adobe Stock)

birminghamal.gov

On Monday, Mayors for Guaranteed Income, Mayor Randall L. Woodfin, and the City of Birmingham said that a pilot program where single mothers were provided a nearly $400 monthly guaranteed income improved participants’’ financial wellness, more parent-child time, decreased work performance issues related to childcare, and increased educational aspirations.

Embrace Mothers guaranteed income pilot provided 110 Birmingham households led by single mothers with $375 a month for a 12-month period beginning in February 2022. This randomized control trial included an additional 132 control group participants who were also single mothers in Birmingham but did not receive guaranteed income.

Key findings from the release of independent data on the pilot include:

  • Improved financial health — 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.
  • Employment —Embrace Mothers 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. 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.
  • Parenting — 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 (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.

Woodfin, who championed the pilot program, said “For every 10 households in Birmingham, six are led by single mothers. These women are the engine of our economy, getting up every day to do what’s necessary to provide the best they can for their children. They’re already experts in making a little stretch a long way, Embrace Mothers proves that even a modest guaranteed income can help them overcome the barriers of poverty.”

One Embrace Mothers participant explained the benefit, stating, “[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.”

“No one is a better money manager than a single mom,” said Michael D. Tubbs, founder of Mayors for a Guaranteed Income. “Too often, these hardworking mothers face impossible circumstances between providing for their children and taking care of their children. Guaranteed income is a way of saying that we see you, and we care about what you’re going through. We know you’re going to use this financial support to be a better parent to your children.”

Birmingham’s pilot is affiliated with Mayors for a Guaranteed Income, a coalition of over 150 mayors. The research findings from Birmingham build upon similar results from the mayor-led guaranteed income programs in Stockton, CA, Saint Paul, MN, Cambridge, MAPaterson, NJ, and Richmond, VA where researchers found increased employment, greater financial stability, more parent-child time, and a better level of overall well-being.

Read the full report on the Embrace Mothers Guaranteed Income program here.