A gathering is scheduled for next month where top UK banks and financial institutions will meet with government officials to discuss their efforts in combatting economic abuse. Lucy Rigby, the Economic Secretary to the Treasury, has extended invitations to 20 organizations for a discussion at the Treasury aimed at increasing awareness about this issue and exploring ways to help victim-survivors regain financial control.
Economic abuse involves the manipulation or exploitation of someone’s financial resources by another individual. It encompasses behaviors such as restricting access to funds, accruing debt in the victim’s name, and monitoring their expenditures. According to Surviving Economic Abuse, 4.2 million women in the UK encountered economic abuse from a current or former partner in the past year.
Among the entities set to participate in the Treasury meeting are major institutions like Barclays, HSBC, Nationwide, NatWest, Santander, and the Financial Conduct Authority. Economic Secretary Lucy Rigby emphasized the detrimental impact of economic abuse, stressing the importance of industry action in combating this pervasive issue.
Lloyds Banking Group has taken a proactive stance in addressing economic abuse by collaborating with Surviving Economic Abuse to establish a specialized team dedicated to aiding affected customers. One survivor, Natalie, shared her experience of regaining financial stability with the support of SEA and Lloyds after being directed to the bank’s dedicated team.
The Government acknowledges the progress made by the industry in supporting victims of economic abuse, such as facilitating access to new bank accounts with non-geographic sort codes to prevent tracking. Additionally, many institutions participate in initiatives like Safe Spaces, providing confidential support for victim-survivors of domestic abuse within designated areas like bank branches.
An online tool has been introduced to assist call handlers at charities and businesses in identifying and addressing domestic economic abuse. Sam Smethers, CEO of Surviving Economic Abuse, commended the collaborative efforts between banks and insurers in providing crucial support to survivors and disrupting perpetrators. He emphasized the need for continued progress in ensuring financial services offer consistent and effective responses to combat economic abuse.
