What is the Debt Breathing Space scheme?

The Debt Respite Scheme (Breathing Space) was introduced in May 2021 in England and Wales under the Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020. There are two types of breathing space. The standard breathing space provides a 60-day period of legal protection during which: interest, fees, and charges on most qualifying debts are frozen; most creditor enforcement action must pause (including letters threatening legal action and court proceedings); and most creditor contact demanding payment must stop. To enter a standard breathing space, you must seek advice from an FCA-authorised or local authority debt adviser, who will assess your circumstances and register you with the scheme if eligible. The mental health crisis breathing space provides the same protections for as long as the person is receiving mental health crisis treatment, plus 30 days after treatment ends. To access this, a mental health professional must confirm the person is receiving crisis treatment, and a qualified debt adviser must register the moratorium. During breathing space, the debtor must continue paying ongoing essential costs and must engage with the debt adviser. Breathing space applies to most personal debts including credit cards, loans, overdrafts, council tax, and HMRC debts — but not student loans, ongoing mortgage payments, or secured debts.