What is the Debt Respite Scheme (Breathing Space)?

The Breathing Space (Debt Respite) Scheme was introduced in England and Wales in May 2021 under the Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020.

There are two types. Standard Breathing Space gives you 60 days of protection from creditor enforcement action. During this period: interest, fees, and charges on included debts are frozen; creditors cannot take enforcement action; creditors cannot contact you about included debts. You must be experiencing problem debt and seeking advice from an approved debt adviser.

Mental Health Crisis Breathing Space applies to people who are receiving mental health crisis treatment. It lasts for the duration of treatment plus 30 days. The same protections apply. An approved mental health professional must confirm you are receiving treatment.

To enter Standard Breathing Space, you must contact an approved debt advice provider (such as StepChange, Citizens Advice, or a local authority debt advice service). They will assess your eligibility and apply to the Insolvency Service on your behalf. You cannot apply directly.

The moratorium covers most personal debts including credit cards, loans, utility arrears, rent arrears, council tax arrears, and mortgage shortfall debts. It does not cover secured debts (the security itself), student loans, domestic violence claims, or criminal fines.

During Breathing Space, you are expected to engage actively with your debt adviser and work towards a sustainable debt solution. If you do not, the moratorium can be cancelled.