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If Creditors Are Chasing You, Breathing Space May Pause That
When debt letters, phone calls, and enforcement action pile up at once, it can feel impossible to think clearly about what to do next. The Breathing Space scheme — formally called the Debt Respite Scheme — was introduced in England and Wales in May 2021 specifically to address this. It creates a legally protected period during which most interest, fees, and enforcement action on qualifying debts must stop.
This page sets out what Breathing Space means, how the two types differ, which debts and creditors are covered, and what the eligibility rules actually say — based on the regulations published on GOV.UK and Legislation.gov.uk.
What Breathing Space Means in Plain Terms
Breathing Space is a formal legal protection, not an informal arrangement between a debtor and their creditor. Once it is registered, creditors covered by the scheme are legally required to stop adding interest and charges, and to halt enforcement action, for the duration of the protected period.
The name reflects the intention: to give someone in financial difficulty a period of stability so they can engage with a debt adviser and explore longer-term options without the pressure of escalating debts. According to GOV.UK, the scheme is administered through registered debt advice providers — individuals cannot apply for it directly.
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The Two Types of Breathing Space
There are two distinct versions of the scheme, and they work quite differently. Understanding which applies to a given situation is important because the duration and eligibility criteria are not the same.
Standard Breathing Space
The standard version provides a protected period of 60 days. During this time, most creditors must freeze interest, fees, and penalties on qualifying debts, and must not take enforcement action. Contact from creditors regarding the relevant debts is also restricted.
To enter standard Breathing Space, a person must be receiving debt advice from a regulated debt advice provider. The adviser registers the moratorium on their behalf through the Insolvency Service's online service. It can only be used once in any 12-month period, according to GOV.UK.
Mental Health Crisis Breathing Space
The mental health crisis version is available to people who are receiving treatment for a mental health crisis. According to GOV.UK, this type lasts for as long as the mental health crisis treatment continues, plus 30 days after that treatment ends — meaning there is no fixed upper time limit in the way the standard version has a 60-day cap.
A mental health crisis moratorium must be applied for by an approved mental health professional (AMHP) or another qualifying third party on behalf of the individual — not by a debt adviser alone. The individual themselves does not need to engage with debt advice to benefit from this protection during the treatment period.
Which Debts Are Covered?
Not every type of debt is covered by Breathing Space. The scheme covers a wide range of personal debts, but several categories are explicitly excluded under the regulations.
Debts that are typically covered
- Credit cards and store cards
- Personal loans and overdrafts
- Council tax arrears
- Utility bill arrears (gas, electricity, water)
- Mortgage or rent arrears (with some restrictions — see below)
- HMRC debts, including tax credit overpayments
- Benefit overpayments
- Buy now, pay later agreements
Debts that are excluded
- Secured debts (such as mortgages) are included in the moratorium for enforcement purposes, but interest on secured debts does not have to be frozen — only unsecured interest is covered
- Ongoing liabilities — such as current mortgage payments, rent, or utility bills that fall due during the Breathing Space period — are not covered and must still be paid
- Debts arising from fraud or fraudulent breach of trust
- Child maintenance obligations
- Student loans
- Crisis and budgeting loans from the Social Fund
- Confiscation orders
According to the regulations, creditors have the right to apply to court to be excluded from a moratorium if they believe it causes them unfair prejudice — though this is a formal legal process and not something creditors can do unilaterally.
Who Is Eligible for Standard Breathing Space?
According to GOV.UK, to be eligible for standard Breathing Space, a person must:
- Live in England or Wales (the scheme does not apply in Scotland or Northern Ireland, which have separate debt legislation)
- Have qualifying debt that they are unable to repay
- Not currently be subject to another Breathing Space moratorium
- Not have used standard Breathing Space in the previous 12 months
- Not be subject to a Debt Relief Order (DRO), Individual Voluntary Arrangement (IVA), or bankruptcy proceedings
The application must be made through a regulated debt advice provider. The adviser carries out an eligibility check and, if satisfied, registers the moratorium with the Insolvency Service. Once registered, it takes effect immediately and creditors are notified.
What Happens During the 60-Day Period?
Once a standard Breathing Space moratorium is registered, several things happen automatically under the regulations. Covered creditors must stop adding interest, fees, and penalties to the relevant debts. They must also halt enforcement action — meaning bailiff visits, county court proceedings, and similar steps cannot proceed.
The person in Breathing Space is still expected to continue paying ongoing liabilities — such as rent, mortgage payments, and utility bills as they fall due during the moratorium period. Breathing Space does not pause current obligations; it freezes the existing debt and its associated charges.
The debt adviser must review the moratorium at the 30-day point to check that the individual is still engaging with advice. If they are not engaging, the adviser may cancel the moratorium. This review requirement is built into the regulations and is one of the reasons an active advisory relationship is a condition of the standard scheme.
At the end of the 60 days, the moratorium ends and normal creditor rights resume. The purpose of the protected period is to allow the individual and their adviser to identify a sustainable debt solution — such as a Debt Management Plan (DMP), Debt Relief Order (DRO), or IVA — before enforcement restarts.
What Breathing Space Does Not Do
It is worth being clear about what the scheme does not provide, because the name can sometimes be misunderstood.
Breathing Space does not write off or reduce any debt. The underlying amounts owed remain in full. It does not extend repayment terms or create a new payment plan. It does not prevent a creditor from issuing a statutory demand or starting legal proceedings — it pauses enforcement of existing proceedings but does not remove debts from a credit file.
It is a temporary pause, not a long-term solution in itself. The expectation, built into the regulations, is that the time gained will be used to reach a more permanent arrangement through regulated debt advice.
How to Access Breathing Space
Because the scheme must be applied for through a regulated debt advice provider, the starting point for anyone who thinks they may benefit is to contact a debt adviser. Free debt advice is available from MoneyHelper (moneyhelper.org.uk), StepChange (stepchange.org), Citizens Advice (citizensadvice.org.uk), and National Debtline (nationaldebtline.org). These organisations can assess eligibility for Breathing Space as part of their advice process at no cost to the individual.
UK Debt Team is a referral business, not a debt advice provider. UKDT does not assess individual circumstances or register Breathing Space moratoriums. Where appropriate, UKDT can connect people with FCA-regulated debt advice firms from its panel who can discuss Breathing Space and other formal debt options.