The Breathing Space scheme: 60 days free from creditor pressure
Quick answer: Breathing Space (officially the Debt Respite Scheme) gives most people in problem debt a 60-day legal pause from interest, charges and enforcement action while they get free debt advice.
Breathing Space (officially the Debt Respite Scheme) gives most people in problem debt a 60-day legal pause from interest, charges and enforcement action while they get free debt advice. A separate Mental Health Crisis Breathing Space lasts for the duration of crisis treatment plus 30 days.
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Primary source: https://www.gov.uk/options-for-paying-off-your-debts/breathing-space
What Breathing Space does
Once a debt adviser has entered you into the scheme, the Insolvency Service notifies your creditors. From that point, on qualifying debts, creditors must pause interest and charges, stop enforcement action (including bailiffs, court action and direct deductions from benefits or wages), and stop contacting you about the debt directly.
The pause does not write debt off. You still owe the money and must keep paying any ongoing liabilities that fall due during Breathing Space (e.g. current rent, current council tax).
Standard vs Mental Health Crisis Breathing Space
Standard Breathing Space lasts 60 days. You can only have one in any 12-month period. Your debt adviser reviews your situation at 25-35 days to decide if you are still engaging with advice — if not, the protection can be cancelled.
Mental Health Crisis Breathing Space is available to people receiving NHS mental health crisis treatment. It lasts for as long as the treatment plus a further 30 days, with no 12-month restriction. It must be requested via an Approved Mental Health Professional (AMHP).
What debts are covered (and which are not)
Most personal debts qualify: credit cards, personal loans, overdrafts, store cards, utility arrears, council tax arrears, rent arrears, benefit overpayments and tax debts owed to HMRC.
Excluded debts include secured debts (e.g. mortgage payments themselves, though arrears can be included), magistrates' court fines, debts from fraud, child maintenance, student loans and TV licence arrears.
Common questions
- Does Breathing Space affect my credit file?
- Creditors can record on your file that a debt is in Breathing Space. It does not directly damage your credit score in the same way as a default or CCJ, but lenders will see you have sought debt help, which can affect future applications.
- How do I apply?
- You cannot apply directly. Contact an FCA-authorised debt advice charity such as StepChange (0800 138 1111), National Debtline (0808 808 4000) or your local Citizens Advice. The adviser decides if Breathing Space is appropriate for you.
- What happens after the 60 days?
- The protection ends and creditors can resume interest, charges and recovery action. The expectation is that you will have used the time to agree a longer-term solution — a Debt Management Plan, DRO, IVA, bankruptcy or full repayment plan.