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What Does "Breathing Space" Mean?
If debt enforcement is pressing down — letters, calls, bailiff threats, or accounts being passed to collectors — there is a legal mechanism in England and Wales that can pause much of that activity. It is formally called the Debt Respite Scheme, but it is almost universally referred to as Breathing Space.
Breathing Space gives someone in problem debt a legally protected period during which most creditors cannot chase payments, add interest, or take enforcement action. It is not a debt solution in itself — it does not write off or restructure what is owed — but it creates a window of stability during which a person can work with a debt adviser to assess their situation properly.
The scheme was introduced by the Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020, and came into force on 4 May 2021.
The Two Types of Breathing Space
There are two distinct versions of the scheme, each with different rules and durations.
Standard Breathing Space
The Standard Breathing Space lasts for 60 days. During that period, most creditors must pause enforcement action, stop adding interest and fees, and cease contact aimed at recovering the debt. To enter a Standard Breathing Space, the person must be referred by a FCA-authorised debt adviser or an approved debt advice provider — it is not something individuals can apply for directly themselves.
The adviser assesses whether the person is eligible, registers the Breathing Space with the Insolvency Service, and is responsible for monitoring the case throughout the 60 days. According to GOV.UK, the adviser must review the situation at the midpoint — at around 25 days — and can cancel the protection if circumstances change significantly.
Mental Health Crisis Breathing Space
The Mental Health Crisis Breathing Space is available to people who are receiving mental health crisis treatment. It lasts for as long as the person remains in mental health crisis treatment, plus 30 days after that treatment ends — with no fixed upper limit on duration. A mental health crisis treatment provider (such as an approved NHS service) must confirm the treatment, and an FCA-authorised debt adviser or approved organisation must still register the protection.
The protections within the Mental Health Crisis version are broadly the same as the Standard version, but creditors have fewer grounds on which they can apply to have it cancelled.
Wondering if Breathing Space could apply?
UK Debt Team refers people to FCA-regulated debt advice firms who can assess Breathing Space eligibility — no obligation, no judgement.
What Debts Are Covered?
Breathing Space covers a wide range of personal debts, but not every type of debt qualifies. According to GOV.UK, the following are among the qualifying debts that can be included:
- Credit cards and store cards
- Personal loans and overdrafts
- Council tax arrears
- Utility bill arrears (gas, electricity, water)
- Rent arrears (but not ongoing rent)
- HMRC debts, including income tax and VAT
- Benefit overpayments
- Pay day loans
- Hire purchase agreements
- Mortgage arrears (but not the ongoing mortgage payment itself)
There are also excluded debts — liabilities that cannot be covered by a Breathing Space. These include secured debts where the creditor's rights cannot be paused without a court order, certain student loans, criminal fines, and child maintenance arrears, among others. A debt adviser will assess which debts qualify when registering the scheme.
What Protections Does It Actually Provide?
Once a Breathing Space is registered, creditors who hold qualifying debts must:
- Stop adding interest, fees, penalties, or charges to the debt
- Pause any enforcement action already underway
- Stop contacting the person about the debt for recovery purposes
- Not start new enforcement proceedings in relation to those debts
If a creditor has already instructed enforcement agents (bailiffs), those agents are required to pause their activity in relation to qualifying debts. According to GOV.UK, creditors are notified automatically via the Insolvency Service register when a Breathing Space is entered — they do not need to be informed individually by the person seeking protection.
It is worth noting that a Breathing Space does not mean debts disappear or are frozen permanently. Interest that has accrued before the scheme started remains. Once the 60 days end, the person's debts are the same as before — the protection is a pause, not a resolution. This is why it is designed to be used alongside professional debt advice.
Who Is Eligible?
To qualify for a Standard Breathing Space, a person must meet all of the following conditions according to GOV.UK:
- They must be an individual (not a business or company)
- They must be resident in England or Wales
- They must have at least one qualifying debt
- They must not already be in a Breathing Space or have been in one in the previous 12 months
- They must not currently be subject to a Debt Relief Order (DRO), Individual Voluntary Arrangement (IVA), bankruptcy order, or a Debt Management Plan where a Breathing Space would not add meaningful benefit
A person cannot self-refer into a Breathing Space. The application must be made through an FCA-authorised debt adviser or an approved debt advice provider. That adviser will assess eligibility, identify qualifying debts, and register the moratorium on the person's behalf. Free debt advice organisations (see signposting below) can do this.
For the Mental Health Crisis Breathing Space, the person must be receiving mental health crisis treatment. A wider range of approved organisations — including some NHS trusts — can certify the treatment, and the debt adviser still handles registration.
What Happens During the 60 Days?
The debt adviser is required to remain active throughout the Standard Breathing Space period. At around the halfway point (approximately day 25 to 35), they must review the case. If the person no longer meets the eligibility conditions — for example, if they have failed to co-operate with the adviser — the Breathing Space can be cancelled early. Creditors also have the right to apply to the Insolvency Service to challenge a Breathing Space if they believe the registration was improper.
The 60-day period is intended to give enough time for the debt adviser to help assess all available options, which might include a Debt Relief Order, an IVA, a Debt Management Plan, or other arrangements. The Breathing Space does not determine which solution follows — that depends on the individual's full financial picture.
What Happens After Breathing Space Ends?
When the Standard Breathing Space expires — or when the Mental Health Crisis period ends — the protections cease immediately. Creditors can resume adding interest from that point forward, and enforcement activity can restart. There is no automatic extension.
This is why the scheme is structured around active debt advice: the expectation is that by day 60, the person will have had enough time to understand their options and, where appropriate, enter a formal debt solution. If a DRO, IVA, or bankruptcy order is in place by the time the Breathing Space ends, those arrangements carry their own legal protections — but they are separate processes.
Someone who has used a Standard Breathing Space cannot enter another Standard Breathing Space within 12 months of the previous one ending. The Mental Health Crisis Breathing Space has no such restriction.
How Does Someone Enter a Breathing Space?
The process begins by speaking to an FCA-authorised debt adviser or an approved debt advice provider. The adviser gathers information about the person's debts, assesses eligibility, and — if appropriate — registers the Breathing Space with the Insolvency Service. The registration takes effect from the date it appears on the Insolvency Service register.
Creditors are notified through the register and are required to apply the protections from that date. The person does not need to write to each creditor individually, though it can sometimes help to inform them directly that a Breathing Space has been registered, particularly if enforcement agents are already involved.
Throughout the 60 days, the person is expected to engage with their debt adviser. The advice process during this window typically involves a full review of income, outgoings, assets, and liabilities — so that the most appropriate next step can be identified before the protection expires.
Free Advice and Where to Get It
Free debt advice — including help with applying for a Breathing Space — is available from several regulated, non-commercial organisations. These include:
- MoneyHelper (moneyhelper.org.uk) — government-backed money guidance service
- StepChange Debt Charity (stepchange.org) — specialist debt advice charity
- Citizens Advice (citizensadvice.org.uk) — local and online advice on debt and other issues
- National Debtline (nationaldebtline.org) — free telephone debt advice service
These organisations are FCA-authorised or approved and can register a Breathing Space on someone's behalf if they are eligible. Their services are free of charge to the person seeking advice.