Financial abuse is a pervasive issue with millions of people being denied access to their finances by abusive partners, friends, or family members every day.
According to the charity Surviving Economic Abuse (Sea), around 5.9 million people in the UK experience some form of economic abuse in their lifetime, while research from Aviva reveals that two in five adults have experienced it.
Financial abuse can manifest in various ways, including restricting access to money, refusing to pay shared bills, accumulating debt in the victim’s name, or preventing them from working.
Increased awareness about financial abuse has been raised in recent years. Mel B of the Spice Girls, for example, revealed in 2018 that her former husband seized control of her finances during their 10-year marriage. She has since advocated for more protection for women facing financial abuse.
In 2021, economic abuse was included in the Domestic Abuse Act, and financially abusive behaviors are addressed in prosecutions under the Controlling or Coercive Behavior Offense in the Serious Crime Act of 2015.
“It’s likely that you know someone who is experiencing economic abuse,” says Dr. Nicola Sharp-Jeffs, founder and CEO of Sea. “Perpetrators tailor the abuse to exert control over their victims, making it appear different in each relationship.”
Here, Telegraph Money provides insight into recognizing the signs of financial abuse, situations where it may be treated as a crime, and where to seek help.
Signs of financial abuse
Unlike physical abuse, financial abuse often starts subtly with reasonable requests for money or suggestions on managing finances before escalating into patterns that are difficult to recognize.
Sea classifies a financial abuser’s actions into three categories:
Sabotaging your access to income: This includes limiting work hours, educational opportunities, or training.
Restricting your finances: Examples include micromanaging spending, demanding justifications for expenses, withholding money, controlling benefits, or monitoring phone and car usage.
Exploiting your economic situation: This involves stealing money, accumulating debt in the victim’s name, refusing to pay shared bills, misusing joint accounts, damaging property, or causing financial harm.
Financial abuse typically accompanies other forms of mistreatment such as physical, sexual, and psychological abuse. It most commonly occurs within intimate partner relationships but can also involve friends, family members, or caregivers, especially when the victim is vulnerable.
Victims often do not recognize financial abuse, even when signs are present. Domestic abuse survivor Zoe Jeffery, for instance, was unaware it existed.
When financial abuse may be treated as a crime
While economic abuse became part of the domestic abuse definition in the Domestic Abuse Act of 2021, it is not a standalone crime. However, its inclusion means that law enforcement and other agencies should be more attentive to recognizing patterns of financial abuse as controlling or coercive behavior.
This recognition is vital because economic abuse falls under the controlling or coercive behavior offense. To qualify as coercive and controlling behavior, the following conditions must be met according to the Crown Prosecution Service:
- The behavior occurs repeatedly (on two or more occasions) or continuously (on an ongoing basis).
- The victim and perpetrator have a personal connection at the time of the behavior.
- The behavior seriously affects the victim.
- The perpetrator knows or should know that their behavior will have a serious effect on the victim.
Further information on prosecuting financial abusers can be found on the Sea website.
Where to find help
Individuals facing financial hardship while attempting to escape abusers can apply for up to £500 from the charity Women’s Aid through a £300,000 fund launched in March.
Your bank may also be able to assist. For instance, TSB introduced an Emergency Flee Fund last year, providing £50 to £500 to help victims with essential expenses.
If you still have a joint current account with your abuser, consult your bank or building society to inquire about closing it. The requirement for both parties to confirm in writing that they want to close the account has been relaxed since the implementation of the Domestic Abuse bill.
Credit reference agencies such as Experian, Equifax, and TransUnion allow you to add a credit report password. This password will help prevent your abuser from applying for credit in your name.
The Sea website offers a telephone support line in partnership with Money Advice Plus (freephone 0808 196 8845) and a survivors’ forum where support and guidance are available.
The Domestic Abuse Helpline can be reached at 0808 2000 247.
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