Economic abuse is more common than we think - so what can be done?

Having your own money can make a big difference to how independent you feel. It gives you options and a sense that you can make decisions for yourself. That’s why it’s so closely connected to our sense of security and control.

That sense of control shouldn’t disappear in a relationship. In healthy partnerships, financial decisions are discussed openly and respected by both people.

But in some relationships, financial power can shift quietly. What begins as concern or careful budgeting can turn into tighter control. Access to money can become restricted. Over time, the imbalance can grow more serious and harmful.

Because money affects almost every part of daily life, this type of control can make it much harder to leave an unhealthy situation.

And the impact doesn’t always disappear when a relationship ends. Damaged credit scores, lost savings, and pension gaps can affect financial security for years.

When money becomes a tool of power

Economic abuse was formally recognised in the UK’s Domestic Abuse Act in 2021. This marked an important shift. Controlling someone’s finances isn’t simply difficult behaviour. It’s abuse.

And it may be more common than many people realise. Research suggests that 4.1 million women in the UK experienced economic abuse from a current or former partner in 2023/24. Around 1.2 million said a partner restricted their access to a personal bank account during that time.

These behaviours often exist within the everyday financial systems most of us rely on.

However, not all economic abuse is obvious. 

Some warning signs can include:

• monitoring spending or demanding access to someone’s bank account;
  
• insisting on joint accounts while keeping personal finances separate;
  
• pressuring someone to take out loans or credit they don’t want; and
  
• taking on debts in someone else’s name without their knowledge or consent.

Even something as routine as a bank transfer can be used to cause harm. Around 21% of victims report receiving threatening or abusive messages through payment references.

How financial products can enable control

Economic abuse often appears through everyday financial tools. These include current accounts, joint accounts, mortgages, credit cards, and personal loans.

These systems were designed to prevent fraud and make payments easier. They weren’t built to recognise coercive control within relationships.

That can create real vulnerabilities, for example:

• Joint accounts - often allow either account holder to withdraw the full balance at any time.
• Online credit applications - can sometimes be completed quickly using basic personal details.
• Mortgage agreements - may legally tie two people together for decades, even after a relationship ends.

Banks are usually required to treat both parties in a joint contract equally. This can make it difficult to intervene, even when something appears wrong.

Why help often comes later than it should

In recent years, many banks have taken steps to support customers experiencing domestic abuse. These include specialist teams, safe spaces in branches, and tools that hide abusive payment messages. 

However, support often arrives after harm has already occurred.

In many cases, women must recognise the abuse themselves. They then have to disclose it. This can happen while their movements, phone, or bank account are being monitored.

It’s also important to recognise that economic abuse doesn’t affect everyone equally. 

Younger women, disabled women, and racially minoritised women report higher rates of economic abuse. Migrant women, or those without access to their own bank account, can face additional barriers when seeking help.

Building better safeguards

Financial institutions may be able to help spot economic abuse earlier. They can also help people take back control of their finances.

Here are some changes that could help:

• Ask about abuse during vulnerability checks - victims may be more willing to speak about abuse when asked in a safe and supportive way.
• Train frontline staff - people often share concerns with the first person they trust. Better awareness across teams could lead to more supportive responses.
• Review joint financial products - clearer ways to separate finances or split joint balances could help people regain control.
• Use technology carefully - banks already use technology to detect fraud. Similar tools could help flag unusual activity, such as repeated transfers or sudden loans. Staff would still need to review these cases carefully.

Signs that things are changing

Despite these challenges, there are reasons to feel hopeful.

The Financial Conduct Authority’s (FCA) Consumer Duty requires firms to act in good faith, prevent harm, and support their customers’ financial goals. Domestic abuse is recognised as a key driver of vulnerability within this framework.

The Financial Abuse Code from UK Finance also sets out principles for how banks should support customers experiencing abuse. These include encouraging disclosure and improving product design.

Awareness is growing across the financial sector and wider society. More organisations are taking their responsibility to vulnerable customers seriously. Regulation is pushing for better outcomes. Survivor-led research is helping shape safer financial systems. Change takes time, and there’s still work to do. But progress is happening.

Economic abuse can leave deep and lasting marks on someone’s financial security and mental health. With greater awareness and stronger safeguards, there’s hope that fewer people will experience its impact.

If you or someone you know has experienced economic abuse, Surviving Economic Abuse offers guidance, resources, and support.

Risk warning

As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information shouldn't be regarded as financial advice.