Breathing Space: What It Is and Who Qualifies

For someone in England or Wales who is struggling with debt and facing creditor pressure, there is a legal scheme that can pause most collection and enforcement activity for 60 days. Known formally as the Debt Respite Scheme — and commonly referred to as Breathing Space — it gives people a legally protected window to work with a debt adviser on a longer-term solution, without interest escalating or bailiffs being instructed in the meantime. According to GOV.UK, the scheme came into force in May 2021 and is administered by the Insolvency Service.

The information below covers how the scheme works, what debts are included, who is eligible, and how the application process operates — based on the rules as published on GOV.UK and the Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020.

Breathing Space is available in England and Wales only. Scotland and Northern Ireland have separate debt relief frameworks and the scheme described here does not apply in those nations.

The Two Types of Breathing Space

According to GOV.UK, there are two distinct versions of the scheme. They share the same underlying legal protections but differ in duration and who they are designed for.

Standard Breathing Space

This is the main version of the scheme. It lasts 60 days and is available to anyone with qualifying debt who is not already in a mental health crisis treatment period. The 60-day window is designed to give someone enough time to receive debt advice and explore formal debt solutions without creditors continuing to escalate the situation during that period.

Mental Health Crisis Breathing Space

A separate version exists for people who are receiving mental health crisis treatment. This version lasts for the entire duration of the treatment plus 30 days after treatment ends — meaning the protection period can be considerably longer than 60 days depending on the individual's circumstances. An approved mental health professional or care coordinator is required to confirm that the person is receiving crisis treatment before this version of the scheme can be applied for.

What Protections Does Breathing Space Provide?

Once a Breathing Space is registered with the Insolvency Service, the protections take effect and creditors are legally required to comply. These protections apply to all qualifying debts included in the application.

• Creditors must stop all contact demanding payment of a qualifying debt
• Most interest, fees, penalties, and charges on qualifying debts must be frozen
• Creditors cannot take enforcement action — including sending bailiffs, applying for a County Court Judgment, or starting bankruptcy proceedings
• Existing enforcement action that has been instructed may be paused for the duration of the scheme
• Creditors cannot apply to court to enforce a qualifying debt during the Breathing Space period

Breathing Space does not write off debt or permanently stop interest. Once the 60-day period ends — or if the Breathing Space is cancelled early — creditors can resume normal action, including recalculating any frozen interest in line with the terms of the original credit agreement.

Which Debts Are Covered?

Not all debts qualify for inclusion in a Breathing Space. The regulations set out a list of qualifying debts alongside a separate list of debts that are specifically excluded.

Debts that typically qualify

• Credit cards and store cards
• Personal loans and overdrafts
• Utility arrears (gas, electricity, water)
• Council tax arrears
• Rent arrears
• HMRC debts (income tax, National Insurance, VAT arrears)
• Benefit overpayments
• Buy-now-pay-later debts
• Hire purchase agreements

Debts that are excluded

• Secured debts — such as a mortgage or secured loan — are excluded from the interest and charge freeze, though the creditor still cannot repossess a property during the Breathing Space period
• Ongoing liabilities such as current rent falling due (the freeze applies to arrears, not future payments as they become due)
• Court fines
• Child maintenance or Child Support Agency arrears
• Student loans
• Debts arising from fraud or fraudulent breach of trust
• Debts incurred after the Breathing Space begins

Who Is Eligible for Breathing Space?

To qualify for standard Breathing Space, the person applying must meet several conditions as set out in the 2020 Regulations.

• The person must live in England or Wales
• The person must have at least one qualifying debt
• The person must not currently be subject to a Debt Relief Order, an Individual Voluntary Arrangement, a Bankruptcy Order, or another active Breathing Space
• The person must not have had a standard Breathing Space in the previous 12 months — the scheme is not designed to be used repeatedly as an ongoing workaround
• The person must be seeking debt advice from a registered debt adviser, as a Breathing Space cannot be applied for directly by the person in debt

The 12-month restriction applies only to the standard version. There is no equivalent restriction on the Mental Health Crisis version — it can be accessed regardless of whether a standard Breathing Space was used recently, provided the eligibility criteria relating to crisis treatment are met.

How the Application Process Works

A person cannot apply for Breathing Space directly — it must be applied for by a registered debt adviser. This is a central feature of how the scheme operates: the pause on creditor action is intended to run alongside proper regulated debt advice, not to replace it.

Registered debt advisers include advisers at charities such as StepChange, Citizens Advice, National Debtline, and MoneyHelper, as well as FCA-authorised commercial debt advice firms. When a qualifying client contacts one of these organisations, the adviser is able to submit the Breathing Space application to the Insolvency Service, which maintains the official register.

Once the application is registered, the Insolvency Service notifies each creditor named in the application. From the point of notification, the creditor's legal obligations begin. The registered debt adviser is also required to review the client's situation at the midpoint of a standard Breathing Space — broadly around day 25 to 35 — to confirm that the person is still engaging with debt advice. If the adviser determines the person is no longer engaging with the process, the Breathing Space can be cancelled before the 60 days are complete.

What Happens After Breathing Space Ends?

Breathing Space is a temporary pause, not a permanent resolution. When the 60-day period ends, creditors can resume contact and enforcement action, frozen interest may be recalculated in accordance with the original credit agreement, and any enforcement that was paused can restart.

The purpose of the scheme is to create a window in which someone can put a longer-term arrangement in place — such as a Debt Management Plan (DMP), Individual Voluntary Arrangement (IVA), Debt Relief Order (DRO), or bankruptcy. A registered debt adviser working with someone during the 60-day period will typically be assessing which of these routes, if any, may be appropriate given the individual's overall financial position.

If a formal debt solution is in place by the time the Breathing Space ends, the legal protections associated with that solution will take over. For example, approval of an IVA creates its own statutory moratorium on creditor action. If no formal solution has been put in place by the end of the scheme, the person returns to their prior position with creditors — though the advice and information gathered during the Breathing Space period may still be of practical use in managing ongoing contact with creditors.

Common Questions About Breathing Space

Can a creditor challenge or cancel a Breathing Space?

Creditors have the right to challenge a Breathing Space, but only on specific legal grounds — for example, if they believe a debt included in the application is not a qualifying debt under the regulations, or that the applicant does not meet the eligibility criteria. A creditor cannot object simply because they disagree with the pause on collection. Any challenge must be made through the Insolvency Service, and both the person in debt and their adviser will be informed of any such challenge.

Does Breathing Space appear on a credit file?

The Breathing Space itself does not appear as a formal entry on a credit file in the same way that a County Court Judgment or IVA does. However, the underlying debts and any defaults or missed payments recorded before or during the Breathing Space period remain visible to lenders. The scheme does not remove or suppress existing negative credit markers.

Are repayments required during Breathing Space?

The Breathing Space period does not require any repayment of the qualifying debts that are frozen — the scheme pauses creditor action rather than setting up a repayment plan. The expectation under the regulations is that the person uses the period to work with their registered debt adviser to assess what, if any, repayment arrangement is realistic given their income and expenditure. Some formal debt solutions explored during this time — such as a Debt Relief Order — may ultimately result in qualifying debts being written off rather than repaid in full, depending on the individual's financial circumstances.

Is the scheme available in Scotland or Northern Ireland?

No. The Debt Respite Scheme applies in England and Wales only, as set out in the 2020 Regulations. Scotland has its own separate debt relief mechanisms, including the Debt Arrangement Scheme and the Moratorium on Diligence. Northern Ireland operates under a different legislative framework. Someone based in Scotland or Northern Ireland will need to seek advice from a regulated debt adviser who is familiar with the rules applicable in their nation.

Speaking to a Regulated Debt Specialist

UK Debt Team is a debt advice lead generation and referral business. The information on this page is provided for general informational purposes only and does not constitute debt advice. UK Debt Team does not assess individual circumstances or recommend specific debt solutions.

For people who want to explore whether Breathing Space or another formal debt solution may be relevant to their situation, UK Debt Team can connect them with FCA-regulated debt advice specialists who are able to assess individual circumstances and, where appropriate, apply for Breathing Space on their behalf. Regulated firms operating in this space may charge fees for certain debt solutions — any such fees would be disclosed clearly before any commitment is made.