Economic abuse: the prison of restriction, exploitation and sabotage
8.7 million people in the UK have experienced economic abuse. That’s millions of people who had their finances restricted, exploited or sabotaged by an abuser.
Economic abuse is so much more than financial control. It is defined as financial abuse (controlling finances, stealing money, or coercing someone into debt) in addition to controlling other resources such as housing, food, transport and employment.
Money can provide power and autonomy that many of us take for granted:
- Having access to a livable income can enable you to buy the essentials without worrying about going into debt.
- Having security over a bank account enables you to plan and save based on a predictable amount coming up on your bank statements.
- Having control over your finances enables you to choose what you want to spend your money on.
These simple things offer the freedom of choice and empowerment over our decisions. When all of these are taken away, this can lead to feelings of isolation and intimidation , as well as impacting someone’s financial health going forward.
As such, economic abuse is classified as one of the categories of domestic abuse in the Domestic Abuse Act 2021. This abuse can have detrimental impacts on someone in the moment but also has the potential to have long-term emotional and financial consequences.
Tina, who was supported by CAP on her journey out of debt, shares her experience of financial abuse.
‘Abuse and domestic violence have followed me all my life, in one form or another. I didn’t know what a normal relationship looked like. My first husband would coerce me into things. He would say, “I can’t get Sky in my name, but you can”. I was being manipulated and I knew it, but I didn’t know what to do. When we split up, everything was in my name and he would say, “I’m not responsible for anything!”
My next few relationships were full of domestic violence and coercive behaviour as well. My second husband already had four kids, and their mum would promise them presents for Christmas but she would never follow through. So, he would say “Tina, can you get it on the catalogue” and I didn’t want to see the kids let down.
I had so much debt but I was in such a low state I didn’t want any more problems added on to me, like kids kicking off because they haven’t got the Christmas presents they wanted. It eventually turned out my second husband was still sleeping with his ex. I should never have married him. It broke me.’
Here at CAP, we frequently see the heartbreaking long-term impact of economic abuse. Almost half of CAP clients (48%) have experienced someone abusing control of their finances or pressuring them to apply for credit*. It’s often a partner taking advantage financially, but may also be a friend or family member.
Economic abuse falls into three main categories. All three can lead to someone becoming forced into, and trapped in, debt:
Restriction
Abusing in the form of restriction such as restricting what payments the victim-survivor is able to make.
Exploitation
In the context of debt: an abuser can exploit the victim-survivor by for example building up debt in their partner’s name
Sabotage
Sabotage can for example lead to the victim-survivor being prohibited from working
Even if someone breaks free from the chains of the abusive person, they can remain trapped by the consequences of their situation.
Some key themes arose from our client survey: of the CAP clients who had experienced someone abusing the control of their finances, 55% were single parents, 16% had a learning difficulty, 69% experienced mental ill-health and 32% faced a serious or terminal illness. The conjunction of economic abuse and vulnerable characteristics is concerning on three levels:
- It highlights a concerning question about whether some people experience heightened vulnerability and risk of economic abuse.
- It draws a picture of the challenges people across the UK are facing every day, being victims of abuse alongside the other challenges they may be facing.
- It showcases the value and importance of holistic approaches to care, where all who work with people with vulnerable characteristics are alert to the signs of economic abuse and educated on how to respond.
That is why CAP has been working alongside organisations from across the sector as part of the ‘Fairness Group’ to create an Economic Abuse Toolkit to help public sector bodies who are recovering debt to help them understand, identify and support people who may have experienced or may be experiencing economic abuse. The toolkit is there to help resource the sector to effectively identify and support people who are experiencing, or have experienced, economic abuse. Although this is by no means a solution, the hope is that through acknowledgement of the issue and providing guidance based on the best practice, people will not have to face economic abuse alone.
We can stand together to support people living through this reality and reduce the devastating impacts this form of abuse has on a person’s life going forward.
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*Data from CAP’s 2021 client survey of 750 Debt Help clients conducted online and by post Oct-Dec 2021.
