Leading banks and financial services in the UK are scheduled to meet with government officials next month to discuss their efforts in combatting economic abuse, a form of financial control or exploitation.
Lucy Rigby, the Economic Secretary to the Treasury, has extended invitations to 20 organizations to convene at the Treasury for deliberations on how to enhance awareness about economic abuse and implement measures to assist victims in reclaiming financial autonomy.
Economic abuse involves one individual manipulating or misusing another person’s financial resources. Tactics commonly observed include restricting money access, generating debts in the victim’s name, and monitoring their expenditures.
Statistics from Surviving Economic Abuse reveal that approximately 4.2 million women in the UK encountered economic abuse from their current or former partners in the previous year.
Among the entities expected at the Treasury gathering are Barclays, HSBC, Nationwide, NatWest, Santander, and the Financial Conduct Authority.
Economic Secretary to the Treasury, Lucy Rigby KC MP, emphasized the detrimental impact of economic abuse, highlighting the necessity for industry interventions to combat this pervasive issue and improve the lives of victims.
Ms. Rigby recently visited Lloyds Banking Group to observe their efforts in addressing economic abuse. Lloyds has collaborated with Surviving Economic Abuse (SEA) to establish a specialized team to aid customers affected by economic abuse.
One survivor, Natalie, shared her experience of regaining financial control with the assistance of SEA and Lloyds’ dedicated team, emphasizing the long-term impacts of financial coercion.
The government acknowledges the progress made by the industry, such as offering customers access to new bank accounts with non-geographic sort codes to safeguard their identities and participation in the Safe Spaces initiative, providing confidential support in bank branches for domestic abuse survivors.
To enhance response capabilities, an online tool has been introduced to aid call handlers in identifying and addressing domestic economic abuse. Sam Smethers, CEO of Surviving Economic Abuse, commended Lloyds’ exemplary practices and urged the industry to further collaborate in supporting survivors and combatting perpetrators.
The Economic Secretary to the Treasury has extended invitations to various firms and organizations to partake in the upcoming meeting, emphasizing the collective effort needed to eradicate economic abuse and enhance support systems for victims.
