MONEY · BREATHING SPACE SCHEME EXPLAINED
Breathing Space Scheme Explained
How the UK Debt Respite Scheme (Breathing Space) protects people in temporary financial crisis.
Quick summary
- Breathing Space pauses most creditor enforcement for 60 days
- Interest and charges are frozen during protection
- Must be arranged through an authorised debt adviser
- Mental Health Crisis Breathing Space has extended protection
- It does not write off debt — it provides temporary relief
For information only
The Breathing Space scheme — officially called the Debt Respite Scheme — is a UK government programme designed to give people temporary protection from most creditor action while they seek debt advice. It can pause interest, charges, and enforcement for 60 days. There is also a longer protection option for people receiving mental health crisis treatment. This guide explains how Breathing Space works, who qualifies, what it covers, and where to apply. This is general information. It is not personalised financial advice.
What Is the Breathing Space Scheme?
The Breathing Space scheme started in England and Wales in May 2021 under the Debt Respite Scheme Regulations 2020.
It provides temporary legal protection from creditors while you:
- Receive debt advice
- Consider longer-term solutions
- Stabilise your finances
During the protection period, creditors must:
- Stop contacting you about included debts
- Freeze interest and charges
- Pause enforcement action
- Stop court proceedings (in most cases)
It gives you time to think clearly without pressure.
Who Can Apply?
You may qualify if:
- You live in England or Wales
- You have qualifying debt
- You are receiving regulated debt advice
- You are not already in Breathing Space
- You are not already in certain formal insolvency processes
Breathing Space must be arranged by a debt adviser authorised by the Financial Conduct Authority (FCA).
You cannot apply directly yourself.
Standard Breathing Space (60 Days)
Standard Breathing Space lasts for 60 days.
During this period:
- Interest and fees are frozen
- Most enforcement action stops
- Bailiffs must pause action
- Court claims are suspended
Your adviser will review your situation at day 30 to confirm ongoing eligibility.
At the end of 60 days, protection ends automatically unless another formal solution is implemented.
Mental Health Crisis Breathing Space
This version applies to people receiving crisis mental health treatment.
It lasts:
- For the full duration of treatment
- Plus 30 additional days after treatment ends
It requires certification from an Approved Mental Health Professional (AMHP).
There is no limit to how many times someone can use this type if eligible.
What Debts Are Covered?
Most unsecured debts qualify, including:
- Credit cards
- Personal loans
- Overdrafts
- Utility arrears
- Council tax arrears
- Benefit overpayments
Excluded debts may include:
- Student loans
- Court fines
- Child maintenance
- Ongoing rent payments (future rent must still be paid)
Your debt adviser will confirm eligibility.
What Breathing Space Does NOT Do
Breathing Space:
- Does not write off debt
- Does not remove the need to repay
- Does not protect future borrowing
- Does not stop secured creditors from enforcing security
It is a pause not a solution.
How to Apply
You must contact a regulated debt advice provider.
Authorised organisations include:
StepChange Debt Charity
Website: https://www.stepchange.org
Phone: 0800 138 1111
Email: advice@stepchange.org
National Debtline
Website: https://www.nationaldebtline.org
Phone: 0808 808 4000
Email: via online contact form
Citizens Advice
Website: https://www.citizensadvice.org.uk
Phone: 0800 144 8848
Government guidance:
https://www.gov.uk/government/publications/debt-respite-scheme-breathing-space-guidance
How It Affects Your Credit File
Breathing Space itself does not automatically appear as a public record.
However:
- Missed payments may already be recorded
- Defaults may still appear
- Creditors may update accounts
The long-term credit impact depends on your wider situation.
When It Is Most Useful
Breathing Space may be helpful if:
- You are overwhelmed by creditor pressure
- You need time to explore options
- You are facing bailiff action
- You have recently lost income
It creates breathing room to make informed decisions.
Key takeaways
- Breathing Space provides temporary legal protection
- It freezes interest and enforcement for 60 days
- Mental Health Crisis protection can last longer
- Must be arranged via authorised debt advisers
- It is a pause, not debt forgiveness
Does Breathing Space wipe my debts?
No. It temporarily pauses enforcement but debts remain payable.
Can creditors still contact me?
They must stop enforcement-related contact for included debts.
Can I apply directly?
No. You must go through an FCA-authorised debt adviser.
Is it available across the UK?
The scheme applies to England and Wales. Scotland has separate arrangements.
Will it affect my credit score?
The scheme itself is not a formal insolvency, but missed payments may impact your file.
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