Leading banks and financial institutions in the UK are scheduled to meet with government officials next month to outline their efforts in combatting economic abuse. Lucy Rigby, the Economic Secretary to the Treasury, has extended invitations to 20 organizations to gather at the Treasury and discuss strategies for increasing awareness of economic abuse.
The agenda will also cover the implementation of support mechanisms to assist victim-survivors in reclaiming financial autonomy. Economic abuse involves the manipulation or exploitation of an individual’s financial resources by another person, with examples including restricting access to funds, accruing debt in their name, and monitoring expenditures.
Statistics from Surviving Economic Abuse reveal that 4.2 million women in the UK encountered economic abuse from a current or former partner in the past year. Among the companies 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 detrimental impact of economic abuse, stressing the industry’s role in curbing this harmful practice. Rigby highlighted the necessity for ongoing efforts to safeguard individuals from economic abuse, given the significant number of individuals affected annually.
In a recent development, Ms. Rigby visited Lloyds Banking Group to observe their proactive approach to addressing economic abuse. Lloyds has collaborated with the charity Surviving Economic Abuse (SEA) to establish a specialized Domestic and Financial Abuse team dedicated to supporting impacted customers.
An individual named Natalie shared her experience of regaining financial control with assistance from SEA, expressing the long-lasting effects of coerced debt orchestrated by an abuser. The Government lauds the progress within the industry, such as facilitating access to new bank accounts with non-geographic sort codes and participating in the Safe Spaces initiative to offer confidential support in bank branches.
Furthermore, an online tool has been introduced to aid call handlers at organizations in identifying and addressing domestic economic abuse. Sam Smethers, CEO of Surviving Economic Abuse, commended Lloyds’ collaborative effort with SEA as a model of best practice, emphasizing the transformative impact of tailored support on survivors’ economic security.
The collaboration between the industry and advocacy organizations is instrumental in providing effective responses that empower survivors, disrupt perpetrators, and combat economic abuse. The Economic Secretary to the Treasury has extended invitations to various firms and organizations for the upcoming meeting to further advance efforts in addressing economic abuse.