Some of the top banks and financial institutions in the UK are scheduled to meet with government officials in the coming month to discuss their efforts in addressing economic abuse.
Lucy Rigby, the Economic Secretary to the Treasury, has extended invitations to 20 organizations to convene at the Treasury for talks on enhancing awareness about economic abuse. The focus will also be on establishing supportive mechanisms to help victim-survivors take back control of their finances.
Economic abuse entails the manipulation or exploitation of an individual’s financial resources by another party. Common manifestations include restricting access to funds, incurring debt in the victim’s name, and monitoring their expenditures.
According to Surviving Economic Abuse, approximately 4.2 million women in the UK encountered economic abuse from their current or former partners last year. Among the entities participating in the Treasury meeting are Barclays, HSBC, Nationwide, NatWest, Santander, and the Financial Conduct Authority.
Lucy Rigby KC MP, the Economic Secretary to the Treasury, emphasized the destructive impact of economic abuse, highlighting the need for industry collaboration to combat this pervasive issue and improve the lives of victims.
Following a visit to Lloyds Banking Group to observe their initiatives in combating economic abuse, it was noted that Lloyds has collaborated with Surviving Economic Abuse (SEA) to establish a specialized team dedicated to assisting customers impacted by economic abuse.
One survivor, Natalie, shared her experience of regaining control over her finances after SEA directed her to Lloyds’ specialized team. She emphasized the long-term repercussions of financial abuse, including negative credit ratings and legal complications.
The government has lauded the progress made by various industries, citing initiatives such as facilitating access to new bank accounts with non-geographic sort codes to safeguard victim-survivors’ anonymity. Additionally, many firms have joined the Safe Spaces program, providing confidential support in designated locations like bank branches for individuals affected by domestic abuse.
An online tool has been introduced by the government to aid call handlers in identifying and addressing domestic economic abuse in charities and businesses.
Sam Smethers, CEO of Surviving Economic Abuse, highlighted the critical role of banks and insurers in supporting survivors and disrupting perpetrators. Collaboration within the financial services sector is deemed essential to deliver effective responses and combat economic abuse effectively.
The Treasury has extended invitations to a select group of firms and organizations to participate in the upcoming meeting.