Millions suffering financial abuse: the definition and signs of financial abuse
What is financial abuse? And what is being done to tackle it?
Almost one in five people have experienced financial abuse at the hands of their partner according to new research.
The study from the Co-operative Bank and Refuge suggested that more than nine million people have been victims of financial abuse. They span all ages, income groups and gender, though 60% of victims are women.
“This study lifts the lid on the true extent of financial abuse in relationships in the UK,” says Laura Carstensen, chair of The Co-operative Bank’s Values and Ethics Committee. “While other types of abuse are well-documented, the impact of this kind of coercive control where money is used as a weapon within an intimate relationship is not yet fully understood.”
What is financial abuse?
Any behaviour that is intended to exert financial control, to exploit finances or to sabotage someone’s financial position is classed as financial abuse.
“Financial abuse is a form of domestic violence and the consequences of this type of abuse can be both devastating and long-lasting,” says Sandra Horley, chief executive of Refuge. “Some women are forced to hand over their wages or benefits to their partner every month. Others are prevented from going to work or completing their education.
She added that many victims are forced to provide receipts, accounting for every single penny they spend or are given tiny ‘allowances’ which are so small they can’t afford to buy food for themselves and their children.
|
Form of abuse |
Number of victims who reported this type of abuse |
|
Partner using money as means of manipulation |
55% |
|
Partner making significant financial decisions without consulting them |
52% |
|
Having to ask permission or show evidence of spending |
49% |
|
Partner taking financial assets without permission |
47% |
|
Personal spending monitored or only allowed money for bare essentials |
45% |
|
Partner putting debts in their name and being afraid to say no |
41% |
|
Partner stopping or interfering with them going to work |
35% |
|
Prevented from having access to a personal bank account |
30% |
Who are the victims?
Women make up the majority of financial abuse victims, but there are still plenty of men who are suffering from this abuse.
The abuse is twice as likely to start at key life events for women compared with men. Those events are typically moving in with a partner, getting married or having children.
Women tend to suffer the abuse for longer than men, with the research finding that 78% of women said their abuse went on for five years or more, compared to 23% of men.
The cases of financial abuse are greatest among heterosexual, married women who work full-time.
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What is being done?
The Co-operative and Refuge have launched a “My Money, My Life” campaign to get the financial services industry to support victims.
The research found that while women are the most affected by financial abuse, they are the least likely to contact their bank for help. As a result, getting banks and building societies to train their staff to be more aware of financial abuse and how to help victims is crucial.
“We are calling on the Government to support an industry-wide agreement to identify and address banking practices that fail to help victims of financial abuse in relationships, and more importantly, support those trapped in relationships with abusive partners,” says Carstensen.
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