Debts: Mental Health

The Government is committed to supporting people experiencing financial difficulties and help them get their finances back on track. Through the Money and Pensions Service (MaPS), which is based in Bedford, we fund a range of national and community-based debt advice services in England, so that people can get the support they need.

In recognition of the link between mental health and financial difficulty, the Government’s recently published Financial Inclusion Strategy considered mental health as a core theme across its interventions. The Strategy sets out a package of measures to improve access to financial services, including a dedicated focus on tackling problem debt which can be a particular challenge for those experiencing mental health difficulties. As part of the Strategy, over £100 million has been allocated to MaPS for 2025-26 to expand access to high-quality debt advice, an increase of over 10%.

Through the Strategy, the Government also announced that HM Treasury will work with the Department for Communities to explore options for extending the Breathing Space Scheme to Northern Ireland. The Scheme provides a 60-day respite from creditor enforcement action to allow people to engage with debt advice. Eligible debtors who are receiving mental health crisis treatment can also access a Mental Health Crisis Breathing Space (MHCBS) which lasts for the duration of their crisis treatment. The Scheme provides valuable support to individuals in problem debt, and the Government continues to monitor its operation to ensure it remains a useful and effective tool.