Economic abuse
WHAT IS ECONOMIC ABUSE?
Economic abuse happens when a perpetrator limits a survivor’s economic freedom. This can take many forms, including a perpetrator taking control over a survivor’s income: spending, borrowing, saving, access to economic resources and property, and access to education. Economic abuse threatens the survivor’s independence meaning that the perpetrator gains control.
Economic abuse is legally recognised in the Domestic Abuse Act 2021, where it is defined as:
“Any behaviour that has a substantial adverse effect on [the victim-survivor’s] ability to (a) acquire, use or maintain money or other property, or (b) obtain goods or services.”
Economic abuse is common, with 1 in 6 women in the UK having experienced a form of economic abuse from a current or former partner.
Economic abuse can include
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A perpetrator taking control of a survivor’s debit or credit card.
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A perpetrator taking control over the household finances, and only giving the survivor a small allowance.
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A perpetrator destroying a survivor’s belongings, such as smashing a phone.
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A perpetrator coercing a survivor into paying more than they should, for example paying all household bills.
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A perpetrator taking out a loan in a survivor’s name.
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A perpetrator preventing a survivor from going to college or university.
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A perpetrator coercing a survivor into quitting their job.
THE DIFFERENCE BETWEEN ECONOMIC ABUSE AND FINANCIAL ABUSE
It’s easy to think that economic abuse and financial abuse are the same thing. However, they are different. Financial abuse is a specific type of economic abuse, where someone controls your assets, finances, and access to cash. In the case of financial abuse, it directly relates to finances and money. In contrast, economic abuse includes a wider range of abusive and coercive behaviours, including destroying property, limiting access to education, and limiting a survivor’s economic freedom.
LINKS TO OTHER TYPES OF ABUSE
Economic abuse is highly common in domestic abuse cases. In fact, 95% of domestic abuse cases involve economic abuse. Economic abuse can lead to, overlap with, or exacerbate, other types of domestic abuse, because:
- The survivor becomes economically reliant on the perpetrator.
- The survivor is deprived of the material means (money, transport, housing, mobile phone) to leave the relationship.
- The survivor becomes isolated from their usual support systems.
UNIVERSAL CREDIT AND ECONOMIC ABUSE
Universal Credit (UC) is set up so that couples receive payments into one bank account. This system enables a perpetrator to take control over household income, which reduces a survivor’s economic autonomy, and can make it hard for the survivor to leave the relationship.
It is possible for claimants to request split payments. However, this shows up on the same online login, so it is dangerous for a survivor with an abusive partner to make this request.
This system actively encourages unequal dynamics in the relationship, with one member receiving the full payment, which can be a gateway into further abusive behaviours.
Groups such as Women’s Budget Group and Women’s Aid have highlighted the UC single payment system as exacerbating economic abuse and advocate for a better system. You can see their recommendations, to improve this system for survivors, here:
