Four years later the number of women impacted by economic abuse had risen to an alarming 4.1 million.

This concerning trend highlights the need for urgent action.

The banking sector can play a vital role by supporting victim-survivors.  In  May 2024, UK Finance launched the From Control to Financial Freedom report summarising the  practical help being provided to individuals that have had their finances restricted, exploited or sabotaged. In August we announced that 25 banks and building societies had committed to accepting the Economic Abuse Evidence Form (EAEF) a Tell Us Once information sharing tool to help victim-survivors of abuse.

The Financial Abuse Code is the central pillar of the industry’s support, and it is important that it is reviewed on a regular basis to ensure that it keeps pace with our increased understanding of victim-survivors’ needs and regulatory expectations, and supports firms to deliver good consumer outcomes in a manner which is appropriate and proportionate for their business.

The launch of the Financial Conduct Authority’s Consumer Duty (FG22/5) provided the platform to revisit the 2021 Financial Abuse Code and this document - the third iteration of the Code since its original launch in 2018 - is the output of that review. 

Sam Smethers, CEO of Surviving Economic Abuse, said: 

In the last year, 4.1 million UK women experienced economic abuse from a current or former partner. The consequences are profound, leaving victim-survivors trapped and struggling to regain control over their lives. Financial services firms can and do play a critical role in changing this. They can be the lifeline that helps victim-survivors break free, rebuild, and regain their autonomy.

The refreshed Code reflects the greater recognition of economic abuse in the industry and the higher consumer protection standards set by the FCA in the Consumer Duty. UK Finance's leadership, along with the 29 firms already signed up to the Financial Abuse Code, has made a lasting impact in the response to economic abuse. We are committed to supporting more firms as they explore becoming signatories or refine their products and services to prevent economic abuse from occurring.

Together with UK Finance and the industry, we will continue improving support for victim-survivors, disrupting abusers, and designing out opportunities for economic abuse within financial products and systems. Working together, we can help save lives and stop economic abuse forever.

Eric Leenders, MD Personal Finance, UK Finance, said

The fact that the prevalence of domestic, financial and economic abuse has nearly doubled in a four period with 4.1 million UK women experienced economic abuse in the last year is deeply concerning in and of itself, but we must not forget that men are also victim-survivors and so the true impact of abusers’ restrictive, exploitative and sabotaging behaviours will far exceed this figure.

This concerning trend raises significant questions about the effectiveness of the Domestic Abuse Act (2021) and shows that urgent action is required to reduce the incidence of domestic abuse crimes and provide the necessary support that victim-survivors so desperately need.

Government should convene an Economic Abuse Task Force, providing cross government leadership on the issues highlighted in the report. Only by tackling economic abuse will the Government deliver on its ambition to halve Violence against Women and Girls in the next decade. 

UK Finance will continue to encourage our members to do all that they can to support victim-survivors achieve financial freedom and central to this work is the ongoing development of the Financial Abuse Code.  Now in its third iteration and aligned to the requirements of the Consumer Duty, this Code provides guidance to firms on how to ensure that victim-survivors receive the support they need to achieve financial freedom from their abuser.

The industry continues to work closely with specialist charities, such as Surviving Economic Abuse and Refuge and their expert input to this Code, highlighting areas that require further consideration, has been gratefully received.

Seeking help when impacted by financial and economic abuse may be extremely challenging, however the FCA’s recent call to encourage customers to contact their bank or building society as the first step to getting help and support is critical.  The industry will do all that it can to help.