One in six women in the UK has experienced financial abuse by a current or former partner, according to charity Surviving Economic Abuse (SEA). Whilst domestic abuse is often still associated with violence or verbal attacks, there’s another form of abuse going on behind closed doors and it’s time to start paying attention.
According to leading charity Surviving Economic Abuse (SEA), they've seen a 150 per cent increase in its website user numbers since April 2021. The worrying rise in traffic shows that financial abuse cases may be on the rise, with research from Aviva revealing that two in five adults have suffered it.
“It’s likely that you know someone who is experiencing economic abuse,” says Dr Nicola Sharp-Jeffs, founder and CEO of charity Sea (Surviving Economic Abuse). “It can look different in every relationship because perpetrators tailor the abuse to exert control over victim-survivors.”
So, how can we spot the signs of financial abuse, and what can we do to protect ourselves?
What actually is financial abuse?
Financial abuse is a form of economic abuse, now recognised in law by the Domestic Abuse Act 2021. Economic and financial abuse have many similarities, however financial abuse specifically refers to control of a victim’s finances, whether that’s restricting access to money or coercing them into taking on debt. Whatever the form of control, the abuse usually leaves the victim in a precarious financial situation.
For many victims, financial abuse co-occurs with other forms of domestic abuse. Yet one of the main reasons why financial abuse goes unnoticed is that it’s often difficult to identify, both for the person experiencing abuse and third parties seeking to help victims. Unlike more visible forms of abuse, financial abuse can start subtly which means that victims can find themselves in abusive relationships without realising. Additionally, the nature of the control exerted by abusers over victims makes it difficult for victims to raise the alarm, as abusers will often cut off access to money and leave the victim dependent on them to survive financially.
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Red flags to watch out for
Many of the signs of financial abuse can look innocuous at first glance. Certain actions might seem well-intentioned - such as offering to manage all of the household finances alone - yet the combination of behaviours can lead to a pattern of abusive behaviour. Concerning behaviours might include sabotaging a victim’s ability to earn their own money, limiting access to bank accounts or exploiting a financial situation for their own benefit.
Emma Willing, Partner in the Family Department at Mishcon de Reya, warns that there are a number of red flags to look out for which might indicate financial abuse.
“There are several red flags to look out for, which can include:
- checking up on your spending – such as examining your credit card or bank statements;
- making you feel guilty or ashamed for spending money on yourself or on activities with your friends;
- trying to limit the work you do – whether the type of job, or the hours you work;
- restricting your access to money, credit cards and resources;
- refusing to contribute to their share of bills or household expenses;
- incurring debt in joint names, or your sole name, which they use for their own purposes; and
- placing ownership of joint assets such as the family home in their sole name.
These are a handful of behaviours which can indicate economic abuse, but abuse is not limited to these behaviours alone and can take on many forms.
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How to protect yourself
If you suspect your partner may be showing signs of financial abuse, there are steps you can take to protect yourself. One way to protect yourself is by ensuring that at least a portion of your income is paid into a bank account that only you have access to, rather than relying solely on joint accounts. You can still be transparent about finances with a partner at the same time as keeping your own separate funds to make sure that you have an emergency pot in the worst case scenario.
Be aware of your personal information and who has access to your passwords, being careful not to store passwords in plain sight. A common feature of financial abuse is the interception of post and using passwords to access personal accounts to exert a level of control over a victim. If you are concerned that a partner may try to empty a joint account and leave you without access to funds, speak to your bank as soon as possible. As well as taking steps to protect yourself, awareness of the moments where you may be vulnerable to abuse is important. According to financial expert Jane Portas, financial abuse often occurs at a number of key moments over an individual’s life.
“The 6 Moments That Matter are six financial life stages – such as moving in with a partner and having a baby - that can empower everyone to secure their financial future. The coercive nature of economic abuse means that abusers use these self-same moments to destabilise women, creating confusion about care and control, and then exploit them. We need every girl and woman to be aware so that we can put an end to economic abuse."
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What to do if it happens to you
If you find yourself in a situation where you suspect you’re a victim of abuse, remember that help is available. If your money has been taken out of your control, speak to your bank who can offer guidance on next steps. In 2018, a number of major banks and building societies signed up to the Financial Abuse Code of Practice which outlines how they can support victims of financial abuse to regain control of their finances, so don’t be afraid to reach out to your bank.
Not all financial abuse constitutes criminal behaviour, however many aspects of domestic abuse - including threats to assault, blackmail and harassment - are criminal offences. If you suspect that you have been the victim of a criminal offence, you can report the abuse to the police or take legal advice from a domestic abuse organisation such as Women’s Aid.
It's also worth noting that anyone experiencing financial hardship trying to flee their abusers can apply for up to £500 from the charity Women’s Aid via a £300,000 fund launched in March 2023.
“If taking legal advice, it is wise to ensure that the perpetrator isn't made aware of this until the appropriate time,” Emma adds. “It may be possible to obtain a protective injunction from the court. If, however, you or someone you know is in immediate danger, call the police on 999.”
Credit reference agencies Experian, Equifax and TransUnion allow you to add a credit report password. This way if your abuser attempts to apply for credit in your name, your password will help prevent this.
How to help someone experiencing financial abuse
Offering your support for someone in this situation can feel limited but here are some ways you can help.
Express concern. Let them know you are there for them but try not to ask too many questions or force a response. Check in on them regularly and ensure they know that help is available. Have information readily available when you speak to them.
Be mindful of your communication with them on all platforms. Remember, financial abuse is about control and it's likely the perpetrator is listening in and reading messages.
Provide practical help where you can. This could be offering a spare room, use of your car, money or helping put a plan of action together.
You can download ‘The 6 Moments That Matter’ here and find out more information about financial abuse on the SEA website.
