Report: International responses to
economic abuse

Key international developments in response to economic abuse over 12 – 18 months across six participating countries: Australia, Canada, Israel, New Zealand, South Africa and the United Kingdom.

Woman thinking at her computer

This report outlines key international developments in response to economic abuse over 12 – 18 months across six participating countries: Australia, Canada, Israel, New Zealand, South Africa and the United Kingdom.

It highlights the actions governments, corporations and other community organisations are taking to make a difference for victim-survivors of this lesser-known form of family violence.

Snapshot: Economic harm from family violence

This snapshot underlines a shift to support better outcomes for New Zealanders experiencing economic harm.

A lack of financial independence, and dealing with the impact of economic harm, are cited as key reasons people stay in violent relationships or are unable to overcome the enduring effects of abuse and establish a life free from family violence. 

Family violence is pervasive and deeply damaging to whānau and communities across Aotearoa. It is one of our greatest shames accounting for more than 40% of a frontline police officer’s time and affecting one in two New Zealand women over the course of their lifetime. 

With statistics like these, it is not possible for one part of our community to effect change by itself – it requires a societal shift driven by collaboration across businesses, government, social services and others. Tackling economic harm is a critical component of this shift, and there are steps we can take towards this in our roles as employers, policymakers and providers of goods and services for New Zealanders.

This snapshot includes the type of work and progress being made, and the role organisations and individuals can play in eliminating family violence in Aotearoa New Zealand.

Report: Family violence economic harm pilot

A brief insight into the issues observed in the first six-months of our Economic Harm Support Service pilot.

Woman with red dyed hair

This Good Shepherd New Zealand interim report provides a brief insight into the issues observed in the first six months of our Economic Harm Support Service pilot. It includes:

  • Areas where we believe our clients are affected by the unintended consequences of government and financial sector policies and processes.
  • Suggested actions to improve outcomes for victims of economic harm.

Letter: Credit Contracts and Consumer Finance Act (CCCFA) changes

8 March 2022

In this joint letter with FinCap, Christians Against Poverty, Ngā Tāngata Microfinance and more, we call on MPs to support changes to the Credit Contracts and Consumer Finance Act (CCCFA) to help protect whānau from spiral debt.

Mum and kids in the park

No whānau in Aotearoa should end up facing serious stress, losing their most valuable belongings or going without kai because a lender is collecting on a loan that was always going to be unaffordable.

This open letter to New Zealand’s MPs backs safe lending laws that bring financial wellbeing to our communities and asks all parties to support the 2021 reform of the Credit Contracts and Consumer Finance Act (CCCFA). 

Read the joint letter calling on MPs to support changes to the CCCFA

Snapshot: Family violence and economic harm statistics

NZ’s family violence events are on the increase and children are present at the majority of incidents the NZ Police respond to.

Family violence statistics

In New Zealand, it is estimated that only 33% of family violence cases are reported. (1)

On average, police attend a family violence episode every four minutes. (1)

67% of family violence episodes still remain unreported. (1)

Nearly half of all homicides and reported violent crimes are related to family violence. (2)

Family violence events have increased 60% over the past five years and are predicted to increase by a further 35% by 2025. (3)

In 2020 and 2021, there were 155,338 family harm incidences which accounted for 16% of all police frontline activity. (1)

Children are present at nearly two-thirds of all family violence incidents police respond to. If this increase continues police anticipate their response to time will almost half – from four minutes to two and a half minutes by 2025. (1)

Below is a breakdown of family violence statistics based on gender, age, ethnicity, disability and employment.

Gender

Research suggests that one in three (33%) of New Zealand women have experienced physical or sexual intimate partner violence (IPV) in their lifetime. (4)

When psychological abuse is added (where economic harm sits), it increases to one in two (55%). (4)

One in eight men reported being victims of family violence. (5)

Gay, lesbian and bisexual adults experience intimate partner physical and sexual violence more than twice as often as other New Zealanders. (6)

Age

Compared with other New Zealanders, adolescents between the ages of 15 and 19 have the highest rates of intimate partner violence.(7)

One in three (29%) young people reported being hit or harmed by a partner and up to 60% of high school students are recorded as having been in an emotionally or physically abusive relationship. (7)

21% per cent of women who stayed in the refuge were also under 20 (15- 19 years). (8)

One in ten elderly experience family violence and 70% of those who experience harm are women. (9)

Evidence suggests that psychological abuse is the most common form of elder abuse and financial abuse is next most frequent, accounting for more than 50% of the recorded incidences. (10)

Ethnicity

Research suggests that some groups are at higher risks than others of experiencing family violence.

Physical and sexual IPV affects one in two (58%) of Māori women over a lifetime. When other forms of violence are included, this could be as high as 80%. (11)

Physical and sexual IPV affects one in three (34%) of European women over a lifetime and one in three (32%) of Pacific women. (12)

Asian women report a lower lifetime prevalence of one in ten (11.5%), but advocates believe there are lower rates of reporting in Asian Communities. (4)

Disability 

Disabled people experience higher rates of both partner violence and non-partner violence. (13)

Employment

Family violence costs NZ employers at least $368 million annually. (14)

Of women who experienced family violence over the period of a year, 19% indicated that the abuse continued at work. (15)

Economic harm statistics

There is limited data in New Zealand relating specifically to economic harm as a form of family violence. 

This is due to it not being well understood and often more invisible than other forms of violence, as it sits within psychological abuse in the Family Violence Act (2018).

Research in 2021 by Associate Professor Janet Fanslow showed an increase in the lifetime prevalence of controlling behaviours towards women and double the rates of economic abuse from a male partner. From 4.5% in 2003 to 8.9% in 2019. (4)

Read about national family violence survey research findings – Associate Professor Janet Fanslow.

When we look at NZ’s family violence prevalence figures alongside international economic harm research, it is estimated that economic harm would be a significant part of our family violence statistics. This is backed up by anecdotal reports from our own and others’ experience working directly with clients in the family violence sector.

International economic harm research

In Australia, women who experienced IPV, nearly all (99%) of them also experienced economic harm, including financial control and exploitation.(16) 

In the UK, 95% of women who experience domestic abuse also report experiencing economic harm.(17)

In the USA, one in four women experiences family violence. Nearly all those cases include financial abuse. “In 99% of these cases, financial abuse is one of the main reasons victims can’t leave and remain in the abusive relationships.” (18)

In the USA,  up to 99% of family violence victims experience economic harm during an abusive relationship, with finances often being cited as the biggest barrier to leaving an abusive relationship. (19)

Sources

  1. https://www.police.govt.nz/sites/default/files/publications/annual-report-2020-2021.pdf 
  2. https://www.justice.govt.nz/assets/safer-sooner-report.pdf 
  3. https://www.stuff.co.nz/national/crime/127027234/family-violence-case-reported-every-four-minutes-predicted-to-worsen
  4. https://nzfvc.org.nz/news/new-research-finds-changes-rates-intimate-partner-violence-nz
  5. https://whiteribbon.org.nz/wp-content/uploads/2012/09/fact-sheet-on-gender-and-family-violence.pdf
  6. https://nzfvc.org.nz/news/new-research-and-reports-about-violence-affecting-lgbttqia-people
  7. https://www.nzherald.co.nz/nz/nz-family-violence-clearinghouse-study-on-adolescent-relationship-violence-revealed/
  8. https://nzfvc.org.nz/news/preventing-adolescent-relationship-abuse-new-nzfvc-issues-paper
  9. https://officeforseniors.govt.nz/our-work/raising-awareness-of-elder-abuse/
  10. https://www.nzherald.co.nz/nz/twilight-years-can-be-hell-for-the-elderly
  11. https://www.rnz.co.nz/news/te-manu-korihi/410738/every-day-i-was-beaten-maori-women-three-times-more-likely-to-be-killed-by-partner
  12. Frequently Asked Questions | New Zealand Family Violence Clearinghouse (nzfvc.org.nz)
  13. https://nzfvc.org.nz/family-violence-statistics/population-based-research-studies#nzfvs2019
  14. https://nzfvc.org.nz/news/research-evidences-cost-domestic-violence-employers
  15. McFerran, L. (2011). Safe at Home, Safe at Work? National Domestic Violence and the Workplace Survey. Australian Domestic and Family Violence Clearinghouse
  16. https://iwpr.org/iwpr-general/the-economic-cost-of-intimate-partner-violence-sexual-assault-and-stalking/
  17. https://survivingeconomicabuse.org/what-is-economic-abuse/
  18. 2018-research-deck-v1.pdf (allstatefoundation.org)
  19. https://ncadv.org/blog/posts/quick-guide-economic-and-financial-abuse

Submission: Family violence and sexual violence

Good Shepherd NZ made a submission on the Government’s National Strategy and Action Plans to eliminate family violence and sexual violence in Aotearoa New Zealand.

Active woman outside

We had three main points:

  • Economic harm needs particular emphasis in the strategy and action plans
  • The private sector needs to be identified as a key participant in the eradication of family violence
  • A gender lens needs to be legislated across all areas of policy.

Research: Economic abuse in New Zealand

Good Shepherd New Zealand worked with the specialist research team at Good Shepherd Australia New Zealand to establish an understanding of economic abuse in New Zealand.

Young hippy city girl

This study considers economic abuse, specifically as a form of intimate partner violence where men perpetrate violence against women, within the New Zealand context. 

The purpose of the report was to contribute to a common understanding of economic abuse and grow the knowledge in this area to support effective, evidence-based policy and practice responses.

Evaluation: Community
finance initiative

May 2018

Malatest International undertook an evaluation of Good Shepherd New Zealand’s no and low interest loans scheme.

Woman at table smiling

The Community Finance Initiative (CFI) was established in 2014 to provide loans to a group of New Zealanders described as ‘financially vulnerable’ – meaning they did not meet standard bank criteria and had exhausted their Work and Income options. 

The CFI provides access to a fair and affordable line of credit as an alternative to fringe lenders, many of whom charge high interest rates and fees. It is run by Good Shepherd New Zealand and BNZ, in partnership with the Ministry of Social Development, and delivered by community partners like the Salvation Army.

This interim report describes the findings of Part One of the outcomes evaluation based on baseline survey results for 324 participants.

Evaluation: Turning the curve driving programme

Allen + Clarke completed an evaluation of a driver licensing programme delivered by ChangeMakers Refugee Forum and Good Shepherd New Zealand.

Woman by car

The ‘Turning the Curve’ driving programme aimed to enable women from refugee backgrounds living in the Wellington region to obtain their full driving licence, and in doing so, contribute to a range of outcomes. 

The purpose of the evaluation was to inform the programme’s implementation moving forward and to assess the value of the programme to the former refugee women who participated in it, to ChangeMakers, and the funders. The evaluation focused on the programme from July 2015 to June 2017.

Evaluation: No interest loans scheme

The evaluation of a pilot no interest loans scheme, in partnership with Aviva, reports on microfinance as a family violence response.

Couple with paperwork at table

Good Shepherd’s No Interest Loan Scheme (NILS) offered no interest loans to people on low incomes for the purchase of essential household goods and services. The NILS model was offered to accredited community organisations, allowing them an adaptable way to provide safe, fair and affordable loans to their individual communities.

Aviva, a specialist family violence agency, was one such organisation. Good Shepherd and Aviva implemented a pilot programme for Aviva’s clients in Christchurch. The Aviva NILS pilot ran from February 2014 to February 2015. This report presents the key findings and recommendations from the evaluation.