Question to the Home Office:

To ask the Secretary of State for the Home Department, whether the Government plans to give support to victims of domestic abuse to help pay mortgage costs and legal fees following financial abuse in a relationship.

Tackling domestic abuse is a Government priority and improving the response to economic abuse is integral to this. Under our landmark Domestic Abuse Act 2021, economic abuse is now recognised in law as part of the statutory definition of domestic abuse - in recognition of the devasting impact in can have on victims’ lives.

Soon we will also publish our Domestic Abuse Plan, which will seek to transform the whole of society’s response in order to prevent offending, support victims and pursue perpetrators, as well as to strengthen the systems in place needed to deliver these goals.

It is vital that agencies and the financial sector are also able to effectively respond to economic abuse and support victims. In February 2021, the Financial Conduct Authority (FCA) published updated guidance for firms on the fair treatment of vulnerable customers, including specific reference to economic control and abuse when considering what can contribute to an individual’s vulnerability. Financial services should also refer to UK Finance’s updated Financial Abuse Code which aims to increase awareness of economic abuse and sets out how participating banks and building societies should support customers.

Victims of domestic abuse are eligible for legal aid to assist with legal fees, subject to a means and merits test. The government is carrying out a review of the means test for legal aid which will consider the experiences of victims of domestic abuse. The review will also look at the capital thresholds for victims, which will include considering how assets (including property) are assessed. We plan to publish the means test review shortly.

In December 2020, we brought forward legislation to improve eligibility for civil legal aid. This removed the £100k cap on the amount of mortgage debt that can be deducted from the value of a person’s property in the means test. This means all mortgage debt will be deducted from the property’s value when assessing eligibility for civil legal aid.

The Government also offers “Support for Mortgage Interest” (SMI) loans to homeowners in receipt of an income-related benefit to help prevent repossession. The Mortgage Pre-Action Protocol also makes clear that repossession must always be the last resort. As such, it is vital that homeowners who are having trouble paying their mortgage or are worried about meeting payments, make early contact with their lender.

In addition, we support and fund organisations that promote awareness of economic abuse, including Surviving Economic Abuse who have received £567,000 of funding between 2018-2022 to increase awareness of economic abuse and support victims.

Furthermore, as part of the Domestic Abuse Act 2021 the Government introduced a new legal duty on local authorities to provide support for victims of domestic abuse and their children within safe accommodation including refuges, backed by £125 million of Government funding to ensure that these vital services are available to anyone who needs them, wherever they live.