UK Finance has called for new changes to help victims of domestic abuse to regain control of their finances.

A new report released by the banking trade body, From Control to Financial Freedom, has explored some of the obstacles experienced by victim-survivors when regaining their financial independence.

Economic abuse occurs when an abuser restricts, exploits and sabotages their victim’s resources, such as mobile phones or transportation, to maintain power and control.

Financial abuse is a subset of economic abuse, and includes the restriction, exploitation and sabotage of financial resources, for example, by controlling their victim’s income, or coercing them to take out a credit card or a personal loan.

Economic, including financial abuse, is recognised under the Domestic Abuse Act (2021) following successful campaigning by UK Finance and charity, Surviving Economic Abuse.

Head of vulnerability, financial inclusion and capability at UK Finance, Fiona Turner, described economic and financial abuse as “horrendous acts”, with consequences that can be “life-changing, life-threatening and long-lasting”.

“We know that there can be complexities in helping victims regain control of their finances, and the recommendations in this report should help unravel some of these issues,” Turner said. “We are committed to playing our part to deliver effective collaboration and action across government, regulators and the private sectors which helps empower victim-survivors to reach their financial goals and achieve financial freedom.”

Many financial services firms are signed up to the 2021 Financial Abuse Code and have a range of support to meet the needs of each person who needs help.

UK Finance, however, believes more needs to be done and outlined three key issues in its report.

These are to review debt accrued as a result of controlling or coercive behaviour, the separation of joint financial services products, and to consider the receipt of payments which are accompanied by abusive payment references.

CEO and founder of Surviving Economic Abuse, Nicola Sharp-Jeffs, warned that 5.5 million victim-survivors have experienced economic abuse in the last year alone, with the cost of living crisis only increasing abusers’ “opportunities for control”.

“This important report sheds light on some of the obstacles faced by victim-survivors when trying to separate their finances from an abuser, often long after they’ve fled,” Sharp-Jeffs added.

“Financial ties like joint mortgages or child maintenance payments sent with abusive messages, create an invisible chain to the abuser, preventing them from moving on and safely rebuilding their lives.

“We look forward to working with UK Finance, the Government, financial services firms and the regulator to implement the learnings in this report and, together, stopping economic abuse forever.”

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