Debt Respite Scheme

The Breathing Space Scheme gives debtors the space to engage with professional debt advice, or to receive crisis treatment for a mental health condition.

A standard breathing space provides people in problem debt with protections from creditor enforcement action for a period of 60 days. It can only be started if a regulated debt adviser assesses the individual to be eligible and that a breathing space would be appropriate for them. This includes ensuring the individual has not been in a standard breathing space in the last 12 months.

In recognition of the link between mental health and problem debt, eligible individuals receiving mental health crisis treatment can access a mental health crisis breathing space (MHCBS) which provides the same protections from creditor enforcement for the duration of the individual’s crisis treatment. A MHCBS can only be started if an Approved Mental Health Professional confirms that the individual is receiving mental health crisis treatment. The debt adviser must also seek confirmation from a nominated point of contact every 30 days that the individual is still receiving eligible mental health crisis treatment in order for the individual to continue to receive the moratorium’s protections.

HM Treasury does not issue guidance to police forces on the handling of alleged abuse or fraudulent use of the Breathing Space scheme. However, HM Treasury does provide guidance for creditors. This outlines that where a creditor considers that an individual or a specific debt does not qualify for a breathing space, or that the debtor has enough funds to repay their debts, they can ask the debt advice provider to conduct a review within 20 days of the breathing space starting. Creditors also have the right to apply to a court at any time for permission to take enforcement action in relation to a debt included in a breathing space.

The Government keeps the scheme under review to ensure it is operating as intended.