Debt Respite Scheme Support

The Government announced a Debt respite scheme launched, aptly named Breathing Space.

Breathing Space will give those facing financial difficulties space to receive debt advice, or mental health crisis treatment, without pressure from creditors or mounting debts.

There are two types of breathing space: a standard breathing space and a mental health crisis breathing space. Where there is a difference between them, we’ll refer specifically to either a standard breathing space or a mental health crisis breathing space. Where there is no difference, we will simply refer to breathing space.

Under the scheme, people will be given legal protection from their creditors for 60 days, with the most interest and penalty charges frozen, and enforcement action halted. They will also receive professional debt advice to design a plan which helps to get their finances back on track.

And recognizing the link between problem debt and mental health issues, these protections will be available for people in mental health crisis treatment – for the full duration of their crisis treatment plus another 30 days.

People across England and Wales who are struggling to repay their debts could be eligible, and the Government expects 700,000 people to benefit in the first year of the scheme.

Most debts will qualify for this debt respite scheme including credit and store cards; personal and payday loans; overdrafts; utility bills, rent and mortgage arrears; and government debts like tax and benefits.

If you need any further information, feel free to contact us.