A new report has shone on a light on a ‘new’ form of domestic abuse, where women are trapped in relationships where they have no access to money for essentials or emergencies, and many are living in poverty. Of course, this form of abuse is not new, but it is a problem that has long been misunderstood and is only now beginning to be recognised and explored.
What is financial abuse?
This form of abuse in domestic relationships can be defined quite simply as the control of money, where one partner denies the other access to funds and exploits their income, if not actively sabotaging their efforts to earn money for themselves.
The results of the report, which was carried out by Women’s Aid and the TUC, are quite shocking. Researchers catalogued the experiences and opinions of women who took part in focus groups, to produce the ‘Women's experience of financial abuse and potential implications for Universal Credit’ report.
Key findings include the following:
- 76% of women said that their partner hid financial information from them
- 58% said that their partners exploited them as a source of money
- 77% said their mental health had been negatively affected by financial abuse
- 67% of working women said that their partners monitored their work activities closely
Researchers also noted that the abuse often carried on after separation and divorce, even worsening due to legal wrangles over child maintenance and other legal issues.
The government’s new Universal Credit could ‘compound the problem’
A key focus of this research was how the new Universal Credit, which replaces other forms of tax credit, could affect people trapped in these financially abusive relationships. Around 40% of women surveyed said that their partners took tax credits or benefits from them, so when the Universal Credit replaces other benefit streams, this could further limit access to independent income. In short, it could put even more control into the hands of these financially abusive partners.
Financial abuse just another controlling behaviour
One of the main conclusions to emerge from the research was that financial abuse is, just like other forms of abuse, all about control. The experiences mentioned above were often accompanied by other controlling behaviour, from forcing women to work unpaid in family businesses to abusive partners spending all of the money on their own needs, leaving mothers without any funds to buy essentials for children.
A five-step plan
The TUC and Women’s Aid have used the research to develop a 5-point plan to help people experiencing financial abuse and prevent it happening in the future. The full details are outlined in the report, but the basic steps involve:
- 1.Agencies identifying and responding to abuse
- 2.Banks becoming more effective at dealing with abuse
- 3.Changes to the delivery of Universal Credit
- 4.Support for survivors from benefits and child maintenance systems
- 5.Collection of further data
Have you ever experienced financial abuse, or know someone who has? Please feel free to share your stories.
If you need expert advice about any aspect of family law or divorce, including to financial issues, contact the friendly, professional team at Tracey Miller.