New UK law aims to end financial abuse in relationships. Can it work?

Does your partner take your pay, pinch the kids’ pocket money or rack up debts in your name? People usually think of domestic abuse as physical violence, but sweeping new legislation in Britain makes clear it also includes economic abuse. The Domestic Abuse Bill 2020, which entered into law on Thursday, aims to expand protections for victims and clamp down on abusers. About 2.4 million people, mostly women, experience domestic abuse every year, according to the UK government.

Many are victims of economic abuse, which often happens in conjunction with physical, sexual or emotional abuse. Economic abuse can stop someone leaving a dangerous relationship or prevent them rebuilding their lives post-separation. Some victims are left with debts of tens of thousands of pounds. Economic abuse has become more prevalent during the COVID-19 pandemic, according to domestic abuse charity Refuge.

Economic abuse is a form of controlling behaviour with often devastating consequences. It not only includes limiting someone’s access to money, but also things like food, clothing, a mobile phone, transport and housing. Economic abuse is often insidious, gradually increasing over time, and can continue or escalate after separation. ”It’s a form of abuse that can continue for decades after a survivor leaves – it’s a last invisible chain to an abuser,” said Nicola Sharp-Jeffs, CEO of the charity Surviving Economic Abuse (SEA). Victims may be left unable to buy food for their children, struggling with debt, saddled with poor credit ratings, and in some cases homeless.

One in five women and one in seven men have experienced economic abuse from a current or former partner, according to a 2015 report by the Co-op Bank and Refuge. More than 80% of victims reported having suffered other forms of abuse. About a third said they had not told anyone about the economic abuse. Only 15% had told their bank. Some women were fearful they would not be believed if they reported it or felt embarrassed and humiliated, while others were scared of their partner’s response. The study also suggested economic abuse was more prevalent among men in same-sex relationships than lesbians.

The law does not stipulate specific penalties for economic abuse, but the maximum penalty for controlling or coercive behaviour, which includes economic abuse, is five years in prison. Leading British banks and building societies have signed up to a code of practice launched in 2018 requiring them to train staff how to spot financial abuse and encourage victims to seek help. Many banks now have information and advice about financial abuse on their websites.

Source: Thomson Reuters Foundation

Author: Tuula Pohjola