The Breathing Space Scheme was established to support those in problem debt engage with professional debt advice, or to receive crisis treatment for a mental health condition, by providing temporary protections from creditor enforcement action.

The Government recognises that these protections have an impact on creditors, including private landlords, and the scheme therefore includes a number of safeguards to protect creditor rights. Creditors may request that a debt adviser reviews a breathing space if they consider that an individual debtor or specific debt does not qualify for the scheme. Creditors also have the right to apply to a court at any time for permission to take enforcement action in relation to a debt included in a breathing space.

The Government keeps the operation of the scheme under review to ensure it is operating effectively.

The Breathing Space scheme allows those in problem debt the space to engage with professional debt advice by providing a temporary relief from creditor enforcement action. Given the link between mental health and problem debt, the scheme also offers a separate entry route for eligible individuals receiving treatment for a mental health crisis.

As is standard for schemes of this nature, HM Treasury will carry out a five-year post implementation review of the scheme to consider its objectives and impact. More widely, the Government monitors the scheme’s operation to ensure it remains an effective tool for individuals and has regular engagement with debt advice providers as part of this.

A breathing space gives individuals the right to legal protections from creditor action to recover debts included in the agreement. If a creditor does not comply, the regulations set out that the debt adviser responsible for the application can contact the creditor to remind them of their obligations or ultimately notify the Insolvency Service, as the scheme’s administrator, to require their compliance. Notifications to the Insolvency Service are very rare. If non-compliance persists, action taken by a creditor is invalid and they may be liable for the debtor’s costs. Repeated breaches can be considered by the creditor’s regulator, where appropriate.

The Breathing Space Scheme was launched in May 2021 to give those in problem debt the space to engage with professional debt advice by providing a temporary relief from creditor enforcement action.

The scheme guidance for creditors sets out their responsibilities when a debtor enters a breathing space and makes clear that, upon being notified, creditors must stop all enforcement action, pause contact with the debtor, and freeze most interest and charges for the duration of the breathing space.

Where a creditor does not comply with the terms of the breathing space, any enforcement action they take is not valid and they may be liable for the debtor’s costs. The debt adviser will also notify the Insolvency Service which administers the scheme, so that the creditor can be reminded of their obligations. Debtors are also able to go through their creditor’s formal complaints procedure and, if relevant, escalate to the appropriate ombudsman or oversight body.

Councils are responsible for the collection of a broad range of debts and are required to recover all debts in accordance with the law.

Access to Mental Health Crisis Breathing Space can only be started if an Approved Mental Health Professional confirms that the individual is receiving mental health crisis treatment. The debt adviser must also seek confirmation from a nominated point of contact every 30 days that the individual is still receiving eligible mental health crisis treatment in order for the individual to continue to receive the moratorium’s protections.

With regard to National Health Service staff, regulators set standards of conduct that regulated health professionals must uphold. These already emphasise the importance of good record keeping. Falsifying patient records could be considered serious misconduct and may lead to a professional's registration being restricted or revoked.

We continue to keep the Breathing Space Scheme under review to ensure it is operating as intended.

The Breathing Space Scheme gives debtors the space to engage with professional debt advice, or to receive crisis treatment for a mental health condition.

A standard breathing space provides people in problem debt with protections from creditor enforcement action for a period of 60 days. It can only be started if a regulated debt adviser assesses the individual to be eligible and that a breathing space would be appropriate for them. This includes ensuring the individual has not been in a standard breathing space in the last 12 months.

In recognition of the link between mental health and problem debt, eligible individuals receiving mental health crisis treatment can access a mental health crisis breathing space (MHCBS) which provides the same protections from creditor enforcement for the duration of the individual’s crisis treatment. A MHCBS can only be started if an Approved Mental Health Professional confirms that the individual is receiving mental health crisis treatment. The debt adviser must also seek confirmation from a nominated point of contact every 30 days that the individual is still receiving eligible mental health crisis treatment in order for the individual to continue to receive the moratorium’s protections.

HM Treasury does not issue guidance to police forces on the handling of alleged abuse or fraudulent use of the Breathing Space scheme. However, HM Treasury does provide guidance for creditors. This outlines that where a creditor considers that an individual or a specific debt does not qualify for a breathing space, or that the debtor has enough funds to repay their debts, they can ask the debt advice provider to conduct a review within 20 days of the breathing space starting. Creditors also have the right to apply to a court at any time for permission to take enforcement action in relation to a debt included in a breathing space.

The Government keeps the scheme under review to ensure it is operating as intended.

The Breathing Space Scheme gives debtors the space to engage with professional debt advice, or to receive crisis treatment for a mental health condition.

A standard breathing space provides people in problem debt with protections from creditor enforcement action for a period of 60 days. It can only be started if a regulated debt adviser assesses the individual to be eligible and that a breathing space would be appropriate for them. This includes ensuring the individual has not been in a standard breathing space in the last 12 months.

In recognition of the link between mental health and problem debt, eligible individuals receiving mental health crisis treatment can access a mental health crisis breathing space (MHCBS) which provides the same protections from creditor enforcement for the duration of the individual’s crisis treatment. A MHCBS can only be started if an Approved Mental Health Professional confirms that the individual is receiving mental health crisis treatment. The debt adviser must also seek confirmation from a nominated point of contact every 30 days that the individual is still receiving eligible mental health crisis treatment in order for the individual to continue to receive the moratorium’s protections.

HM Treasury does not issue guidance to police forces on the handling of alleged abuse or fraudulent use of the Breathing Space scheme. However, HM Treasury does provide guidance for creditors. This outlines that where a creditor considers that an individual or a specific debt does not qualify for a breathing space, or that the debtor has enough funds to repay their debts, they can ask the debt advice provider to conduct a review within 20 days of the breathing space starting. Creditors also have the right to apply to a court at any time for permission to take enforcement action in relation to a debt included in a breathing space.

The Government keeps the scheme under review to ensure it is operating as intended.

The Breathing Space Scheme gives debtors the space to engage with professional debt advice, or to receive crisis treatment for a mental health condition.

A standard breathing space provides people in problem debt with protections from creditor enforcement action for a period of 60 days. It can only be started if a regulated debt adviser assesses the individual to be eligible and that a breathing space would be appropriate for them. This includes ensuring the individual has not been in a standard breathing space in the last 12 months.

In recognition of the link between mental health and problem debt, eligible individuals receiving mental health crisis treatment can access a mental health crisis breathing space (MHCBS) which provides the same protections from creditor enforcement for the duration of the individual’s crisis treatment. A MHCBS can only be started if an Approved Mental Health Professional confirms that the individual is receiving mental health crisis treatment. The debt adviser must also seek confirmation from a nominated point of contact every 30 days that the individual is still receiving eligible mental health crisis treatment in order for the individual to continue to receive the moratorium’s protections.

HM Treasury does not issue guidance to police forces on the handling of alleged abuse or fraudulent use of the Breathing Space scheme. However, HM Treasury does provide guidance for creditors. This outlines that where a creditor considers that an individual or a specific debt does not qualify for a breathing space, or that the debtor has enough funds to repay their debts, they can ask the debt advice provider to conduct a review within 20 days of the breathing space starting. Creditors also have the right to apply to a court at any time for permission to take enforcement action in relation to a debt included in a breathing space.

The Government keeps the scheme under review to ensure it is operating as intended.

When a Breathing Space is cancelled, the creditor will be automatically notified by the Insolvency Service. They should provide a copy of this notification to the county court when they apply for any further enforcement action.

The decision on whether someone enters a Breathing Space Moratorium is not initially determined by the court but by a debt advice provider authorised by the Financial Conduct Authority or by a local authority (where they provide debt advice to residents). For a Mental Health Breathing Space, an Approved Mental Health Professional must certify that a person is receiving mental health treatment. If a creditor disagrees with a notification, there are grounds under which they can ask the debt advisor for a review. After a review, if the creditor does not agree with the decision, they can then apply to the court to cancel the breathing space.

If a creditor who has applied to the court is concerned about the validity of documents supporting a Mental Health Breathing Space, they should include supporting evidence as to why the documentation may be invalid in their application, verified by a statement of truth. Such applications are treated as a Part 8 claim by the court. The evidence will be considered by a judge who will make the decision.

When a Breathing Space is cancelled, the creditor will be automatically notified by the Insolvency Service. They should provide a copy of this notification to the county court when they apply for any further enforcement action.

The decision on whether someone enters a Breathing Space Moratorium is not initially determined by the court but by a debt advice provider authorised by the Financial Conduct Authority or by a local authority (where they provide debt advice to residents). For a Mental Health Breathing Space, an Approved Mental Health Professional must certify that a person is receiving mental health treatment. If a creditor disagrees with a notification, there are grounds under which they can ask the debt advisor for a review. After a review, if the creditor does not agree with the decision, they can then apply to the court to cancel the breathing space.

If a creditor who has applied to the court is concerned about the validity of documents supporting a Mental Health Breathing Space, they should include supporting evidence as to why the documentation may be invalid in their application, verified by a statement of truth. Such applications are treated as a Part 8 claim by the court. The evidence will be considered by a judge who will make the decision.

The Insolvency Service collects data regarding Breathing Space applications in England and Wales; this includes the number of applications subsequently cancelled due to ineligibility. 374,529 Breathing Space applications were registered between 4 May 2021, when the scheme was launched, and 3 December 2025. Of these, 2,292 registrations have been subsequently cancelled due to ineligibility, representing 0.6% of applications. The criteria for ineligibility is taken from the official Breathing Space guidance.

The government launched the Breathing Space scheme on 4 May 2021, and as of February 2024, over 216,000 people in problem debt have benefited from Breathing Space protections.

In developing the scheme, the government took the decision that sixty days is an appropriate period for breathing space to last to give individuals the time to engage with debt advice, whilst maintaining fairness and certainty for creditors.

The Government launched the Breathing Space scheme on 4 May 2021. The aim of the scheme is to encourage earlier access to debt advice and enable people in problem debt to get their finances back on track. As of December 2022, over 200,000 people in problem debt have benefited from Breathing Space protections.

The Government is committed to supporting individuals in problem debt. At the Autumn Statement, further support to protect struggling families with the cost of living was announced. This brings the total support for households over 2022/23 to 2024/25 to £104 billion – an average of £3,700 per household. In addition, the Government continues to maintain record levels of funding for the Money and Pensions Service to provide debt advice in England, bringing their debt advice budget to £92.7 million in 2024.

The Government launched the Breathing Space scheme on 4 May 2021. The aim of the scheme is to encourage earlier access to debt advice and enable people in problem debt to get their finances back on track. As of December 2022, over 200,000 people in problem debt have benefited from Breathing Space protections.

The Government is committed to supporting individuals in problem debt. At the Autumn Statement, further support to protect struggling families with the cost of living was announced. This brings the total support for households over 2022/23 to 2024/25 to £104 billion – an average of £3,700 per household. In addition, the Government continues to maintain record levels of funding for the Money and Pensions Service to provide debt advice in England, bringing their debt advice budget to £92.7 million in 2024.

As part of the consultation on the Statutory Debt Repayment Plan (SDRP), the Government proposed minor technical changes to Breathing Space and invited views on what further changes could be made. The Government is considering these proposals and will provide a further update in due course.

The Insolvency Service publishes official statistics on the breathing space scheme as part of its Monthly Insolvency Statistics series, available at: https://www.gov.uk/government/collections/monthly-insolvency-statistics.

In the period from 4 May 2021 (when the scheme started) to 31 May 2022, there were 1,123 mental health breathing space registrations.

Data for June 2022 will be published in mid-July.

HM Treasury has not produced up-to-date estimates for the number of mental health breathing space registrations expected in the next 12 months.

The breathing space scheme launched on 4 May 2021, and includes most personal debts and debts owed to Government, including Universal Credit overpayments. The Government considers that, for breathing space to be successful, it needs to include a wide range of debts.

The Government recognises the importance of including all Universal Credit debts in breathing space, and is committed to including Universal Credit advances within the scheme as soon as possible.

This will happen at a later date to ensure that the significant IT changes the Department for Work and Pensions needs to make do not compromise the safe delivery of Universal Credit, which is now supporting 6 million people. It has always been possible to defer repayments of Universal Credit Advances for 3 months in cases of hardship. In addition, from April 2021, the timeframe for the repayment of advances has been extended from 12 months to 24 months.

The breathing space scheme launched on 4 May 2021, and includes most personal debts and debts owed to Government, including Universal Credit overpayments. The Government considers that, for breathing space to be successful, it needs to include a wide range of debts.

The Government recognises the importance of including all Universal Credit debts in breathing space, and is committed to including Universal Credit advances within the scheme as soon as possible.

This will happen at a later date to ensure that the significant IT changes the Department for Work and Pensions needs to make do not compromise the safe delivery of Universal Credit, which is now supporting 6 million people. It has always been possible to defer repayments of Universal Credit Advances for 3 months in cases of hardship. In addition, from April 2021, the timeframe for the repayment of advances has been extended from 12 months to 24 months.