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UK Finance has released a report titled “From Control to Financial Freedom,” addressing the challenges victim-survivors of domestic abuse face in regaining financial independence.
The report identifies economic abuse as an exploitative behaviour where abusers restrict and sabotage their victim’s access to essential resources to maintain control.
Financial abuse, a subset of economic abuse, involves manipulating the victim’s financial resources, such as income and credit.
Recognised under the Domestic Abuse Act 2021, economic and financial abuses were spotlighted thanks to efforts by UK Finance and partners like Surviving Economic Abuse.
Financial services firms have committed to supporting victim-survivors through adherence to the Financial Abuse Code 2021 and offering tailored support services.
Nevertheless, the report reveals persistent issues such as debt accrued through coercive control, challenges in separating joint financial products, and abusive payment references.
Recommendations include the development of a system to block harmful payment references, sharing best practices across sectors, and a comprehensive “ecosystem” response to deliver effective support.
Additionally, a “Tell Us Once” service is proposed to streamline the disclosure process for victim-survivors, alongside the adoption of the Economic Abuse Evidence Form by financial services to facilitate communication regarding abuse.
Fiona Turner, head of vulnerability, financial inclusion, and capability at UK Finance, emphasised the critical nature of these abuses and the complex challenges in aiding victims. “The recommendations in this report should help unravel some of these issues,” she stated, affirming the sector’s commitment to collaborative efforts that empower victim-survivors to achieve financial freedom.
Nicola Sharp-Jeffs, CEO and founder of Surviving Economic Abuse, highlighted the urgency of coordinated action, noting the exacerbation of control opportunities by the cost-of-living crisis. “This important report sheds light on the obstacles victim-survivors face when trying to separate their finances from an abuser,” she said, calling for industry-wide implementation of the report’s recommendations to end economic abuse.
The report advocates for legal and policy reforms to support victim-survivors better, suggesting changes to the Consumer Credit Act 1974 and a review of mortgage lending practices to facilitate financial autonomy for those affected by economic abuse.
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