Today, the Government launched its Financial Inclusion Strategy, which aims to tackle barriers to accessing affordable and appropriate financial products and services. 

As a result of SEA’s influencing work, the Strategy includes economic abuse as a cross-cutting theme, alongside specific measures to address victim-survivors’ financial exclusion. 

Speaking about the Strategy, Sam Smethers, CEO of Surviving Economic Abuse, said: 

“We welcome the government’s financial inclusion strategy and its focus on tackling the financial exclusion that so many victim-survivors face because of economic abuse.  

“For far too long, domestic abusers have stolen victim-survivors’ futures – forcing them into debt and destroying their credit scores with life-shattering consequences. This strategy provides a golden opportunity to help survivors rebuild their lives by restoring their credit scores. It’s one we must seize so that credit reports reflect victim-survivors’ creditworthiness, not the economic abuse they have experienced.  

“No survivor should be left paying the price for the abuser’s crimes. We look forward to working with the government and the financial services sector to ensure survivors’ experiences remain at the forefront of implementing credit restoration measures, with clear accountability for delivery – and to go further. Survivors need consistent, good practice responses to coerced debt across the public and private sectors, and we are ready to work with government and industry to make that happen.  

“Economic abuse is not experienced equally, and abusers often exploit systemic inequalities to maintain control. All survivors, including migrant victim-survivors whose immigration status limits their access to bank accounts, should be able to manage their own finances safely. To achieve this, delivery of the strategy must tackle these additional barriers so that every survivor can rebuild their life free from economic abuse.” 

In recognition of the unique challenges victim-survivors face to financial inclusion as a result of economic abuse, the Financial Inclusion Strategy sets out to: 

• Develop a credit restoration solution – the largest Credit Reference Agencies, Surviving Economic Abuse (SEA), UK Finance and creditors will work together to develop an approach that improves how coerced debt, caused by an abusive current or ex-partner, is reflected on victim-survivors’ credit files. 

• Produce insurance sector guidance on economic abuse – the Association of British Insurers (ABI) will develop a good practice guide for the insurance industry on how to best support customers experiencing economic abuse. This must be done in collaboration with specialists such as SEA. 

• Inclusive design working group – UK Finance will support an inclusive design working group to “share best practice, identify where gaps remain, and consider whether industry-led guidance or standards are needed” to help the industry co-develop products and services with people with lived experience. This could build on SEA’s pioneering work bringing together banks and survivors to co-design trauma-informed, safe and survivor-centred products. 

• Expand access to banking for those without ID or a fixed address – the Government and industry will extend the No Fixed Abode pilot and launch an industry-led Identity and Verification Working Group to establish a pilot, helping people who are homeless or lack standard identification documents to open bank accounts. These initiatives will support survivors to regain financial independence after fleeing an abuser and must address the additional barriers migrant survivors face to opening an independent bank account. 

• Commitment to better supporting victim-survivors experiencing joint mortgage economic abuse – the Government has committed to working with key stakeholders, including industry and the FCA, to explore how victim-survivors of joint mortgage economic abuse can be better supported. 

• Update the Public Sector Economic Abuse Toolkit and launch related training modules – the Government will update the Public Sector Economic Abuse Toolkit and launch related training, which all civil servants working in debt roles will be expected to complete. This will improve the identification of and support for victim-survivors of economic abuse who hold government debts. This toolkit update and training must be developed in collaboration with specialists, including SEA. 

ENDS

For further information or to arrange an interview with a SEA spokesperson, please contact the Surviving Economic Abuse press office on: [email protected] / 07786 073249