Understanding the Breathing Space Scheme
If you’re feeling overwhelmed by debt, you’re not alone, and you’re not without options. One of the most valuable forms of support available in England and Wales is the Breathing Space (Debt Respite) Scheme, a government-backed initiative that gives you time and protection while you work towards getting back on track.
The scheme is only available in England and Wales.
What Is the Breathing Space Scheme?
The Breathing Space Scheme provides people who are in problem debt with temporary legal protection from creditors. It pauses most collection activity, interest, and charges, giving you breathing room to get expert debt advice and make a sustainable plan.
There are two versions of the scheme:
- Standard Breathing Space – for anyone struggling with problem debt.
- Mental Health Crisis Breathing Space – for people receiving treatment for a serious mental health crisis.
How Does It Protect You?
Once approved, Breathing Space provides several key protections. For debts included in your application, it:
- Creditors cannot contact you about included debts during the Breathing Space period.
- Pauses enforcement action, including bailiff visits and court proceedings.
- Freezes interest and charges on eligible debts, helping stabilise your finances.
- Though enforcement and interest are paused, you should continue making debt repayments if you can.
If you’re receiving mental health crisis treatment, these protections last for the full duration of your treatment, plus 30 days after it ends.
How Long Does It Last?
- Standard Breathing Space: Up to 60 days.
- Mental Health Crisis Breathing Space: For as long as treatment continues, plus 30 days after treatment ends.
How Do You Apply?
You cannot apply directly, a qualified debt adviser must assess your situation and, if appropriate, submits an application on your behalf.
If you’re receiving mental health crisis treatment, an Approved Mental Health Professional (AMHP) or another authorised person can work with a debt adviser to start your application.
Find free, independent debt advice via the MoneyHelper website, they list trusted, FCA-regulated organisations that can help online, by phone, or face to face.
Does It Cost Anything?
The Breathing Space application itself is completely free. Some debt advice providers may charge fees for longer-term debt solutions (like debt management plans), so always ask about costs upfront.
Are You Eligible?
To apply, you must:
- Live or usually reside in England or Wales.
- Owe qualifying debts, such as credit cards, personal loans, rent arrears, or utility bills.
- Not currently in a Breathing Space, or have used one in the last 12 months (unless it was for a mental health crisis).
- Not be in an Individual Voluntary Arrangement (IVA), Debt Relief Order (DRO), or undischarged bankruptcy.
Most personal debts qualify, but new debts taken on after your application aren’t protected.
Important Things to Know
- You should still pay ongoing bills such as rent, council tax, and utility costs if possible, these are known as ongoing liabilities.
- You must stay in contact with your debt adviser throughout. Your Breathing Space could be cancelled if you fail to engage.
- The scheme doesn’t write off debt, it simply pauses pressure, giving you time to seek advice and decide your next steps.
Breathing Space isn’t a solution by itself, but it’s an important first step toward financial recovery. It gives you the time, legal protection, and breathing room you need to reduce stress and access professional help.
If you’re struggling with debt or mental health pressures, free and confidential support is available from organisations such as StepChange, National Debtline, and Citizens Advice.
Don’t Forget
If you’re dealing with debt, financial stress, or on a low income, reducing your household costs can make a big difference. You can get help through government-funded programmes like ECO4 and the Great British Insulation Scheme (GBIS). They can help eligible households by:
- Improving home insulation and heating.
- Reducing energy bills.
- Creating warmer, healthier living spaces.
Check your eligibility here, it’s free, quick, and could make a real difference to your comfort, wellbeing, and household finances.
People Also Ask
What is the Breathing Space scheme?
The Breathing Space scheme (also called the Debt Respite Scheme) gives people in England and Wales a legal moratorium from most debt enforcement for up to 60 days, while they take debt advice and develop a repayment plan. During this time, most interest, charges, and creditor contact are paused. There’s also a Mental Health Crisis Breathing Space for people receiving certified crisis treatment, which lasts for the treatment period plus 30 days.
How do I apply for Breathing Space?
You need to go through a debt adviser (authorised by the Financial Conduct Authority or a local authority) who will assess your situation and, if appropriate, submit the application to the Breathing Space register. If you’re in a mental health crisis, someone else (e.g. a carer or mental health nurse) can apply on your behalf.
Can I use Breathing Space more than once?
You can only apply for a standard Breathing Space once every 12 months. But if you qualify for a Mental Health Crisis Breathing Space, there is no 12-month limit as long as you continue to receive crisis treatment.
What debt is covered by Breathing Space?
Most personal debts can be included, but there are exceptions. For example, new secured debt arrears (on mortgages or hire-purchase) that arise after you’ve started Breathing Space are not automatically protected. Debts from fraud are also excluded.
Does Breathing Space stop eviction or bailiff action?
Yes, for debts included in the scheme, enforcement action (including eviction or bailiffs) must be paused while Breathing Space is in place. For a mental health Breathing Space, eviction cannot go ahead during the period of protection.
Do I have to make any payments during Breathing Space?
Yes, Breathing Space is not a payment holiday. You should continue paying what you can afford, especially ongoing liabilities like rent or utilities. Missing these may affect whether your Breathing Space continues or is cancelled.
What happens when Breathing Space ends?
Once it ends, creditors may resume enforcement action (e.g. court proceedings), and they can start applying interest, fees, or penalties again. However, they cannot retroactively charge interest or fees that accrued during the Breathing Space, unless a court allows it.
Who runs the Breathing Space register?
The Insolvency Service maintains the Breathing Space electronic register, which notifies creditors when someone enters or exits the scheme. Debt advisers also handle applications and communicate with creditors.
Is it free to apply for Breathing Space?
Applying for Breathing Space via a debt adviser is free, although some debt advice providers may charge a fee (so it’s worth checking).
What if creditors don’t follow the rules during Breathing Space?
If a creditor fails to apply the required protections (e.g. they try to enforce debt or add charges), those actions are invalid and may be voided. You (or your adviser) can complain to the creditor, or escalate via their complaint procedure or regulator.
Useful Resources:
Cost of Living Support Available:
- Household Support Fund (England)
- Cost of Living Payments
- Support for Mortgage Interest (SMI)
- Mortgage Guarantee Scheme
- Council Tax Reduction
ECO4 Support Available:
- Department for Business, Energy & Industrial Strategy, Energy Company Obligation
- Ofgem Energy Company Obligation (ECO4) Guidance: Delivery V1.1
- Ofgem Energy Company Obligation (ECO)
- UK Government, Help from your energy supplier: the Energy Company Obligation
- Which? Energy Company Obligation (ECO)
Other Support Available:
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