Barclays Bank's decision to freeze Becky Webster's account last year left her without access to her son's state benefit payments for over a week. This marked the 15th time Webster, a former NHS worker who now works full-time as an escort, had been denied a bank account or had one closed.
In response, Webster started a petition urging MPs to ensure that sex workers can access banking services, which garnered over 11,000 signatures. "I can't continue an application for a bank account when I state my occupation as sex work," Webster noted. "You want me to pay taxes but take away my banking access?"
Webster's campaign comes amid growing concern that banks are unfairly denying financial services to certain groups. Though the issue has drawn attention due to politician Nigel Farage's account being closed by private bank Coutts, it also affects countless individuals and businesses.
This year, a parliamentary committee found that more than 140,000 businesses had their accounts closed by major banks. The Financial Conduct Authority (FCA) is reviewing these account closures.
While soliciting sex work and brothel-keeping are illegal in England and Wales, selling and purchasing sexual services between consenting adults is legal. Estimates suggest around 72,800 people in the UK earn money through sex work, with the majority being women.
Research by the Sex Workers Union and advocacy group Decrim Now found that over 80% of SWU members had faced financial discrimination. As cash use declines, these workers increasingly rely on online payments.
National Ugly Mugs (NUM) pointed out the lack of understanding among banks about how sex industries operate in the UK, leading to widespread banking discrimination against sex workers.
Sex workers in the UK must pay income tax on earnings, yet they often face obstacles in accessing financial services. Webster, for instance, is registered as a sole trader and pays taxes, yet has been hindered in opening bank accounts.
Banks claim they must monitor and prevent financial crime, including sex trafficking. UK Finance, a trade body, said decisions to freeze or close accounts are often based on risk management and regulatory obligations. However, activists argue that denying sex workers access to banking services puts them at higher risk of exploitation and theft.
Jessica Van Meir, co-founder of MintStars and a Harvard researcher, said losing bank accounts is life-threatening for sex workers. This can push them towards online platforms that take a cut of their earnings or force them to rely on others who may exploit them.
People in adjacent legal fields also face financial discrimination. Decrim Now reported that sex educators, therapists, and artists are caught in the "banking's war on sex" due to banks' automated analysis and opaque risk assessments.
Van Meir herself struggled to open a business bank account for her start-up, a VC-backed online adult content platform, and had to rely on a more lightly regulated e-money institution.
In response to Webster's petition, the Treasury recently announced measures to protect bank customers, including increasing the notice period for account closures and requiring lenders to provide more detailed explanations.
The FCA has met with various consumer groups, including sex industry representatives, as part of its probe into account closures. However, the regulator declined to comment.
Audrey Caradonna of Decrim Now emphasized the need for financial authorities to stop equating sex work with criminality, arguing that current laws and stigma exacerbate risks for sex workers and financial institutions alike.
Barclays stated that it could not comment on specific account details without customer consent.