Dealing with problem debt is hard enough without the constant pressure of letters, calls and mounting interest. The Breathing Space scheme exists precisely to take that pressure off for a while, giving people the time and headspace to get proper advice and work out a way forward. It will not clear your debts, but for many it is the calm pause that makes everything else possible. Here is how it works. This is general information, not financial or legal advice.
What it is
The Breathing Space scheme, officially the Debt Respite Scheme, is a government scheme in England and Wales that gives people in problem debt legal protection from most creditor action while they get debt advice. Once it begins, qualifying creditors must pause enforcement, and most interest, fees and charges on the included debts are frozen.
It was introduced in May 2021 and is intended as a starting point, not a solution in itself. The goal is to remove the immediate stress so you can take advice and choose a sustainable way to deal with what you owe, whether that turns out to be a debt management plan, a formal insolvency option, or simply a renegotiated arrangement.
There are two routes: a standard route open to anyone in problem debt, and a mental health crisis route with stronger and longer protections for people receiving crisis treatment.
Breathing Space does not write off a penny of debt. What it buys you is time, free from interest and enforcement, to get advice and make a clear-headed decision.
What protections it gives
During a Breathing Space, for the debts included in it, creditors must:
- Stop most interest, fees and penalty charges from being added.
- Pause enforcement action, such as instructing bailiffs or applying for a County Court Judgment (CCJ).
- Stop contacting you to demand payment of those debts.
These are legal protections, not requests, so creditors who are notified must comply. The aim is to freeze the situation exactly where it is, so it neither improves nor worsens, while you take advice.
The two routes compared
The scheme works differently depending on which route applies.
| Feature | Standard Breathing Space | Mental health crisis Breathing Space |
|---|---|---|
| Who it is for | Anyone in problem debt | People receiving mental health crisis treatment |
| Length | Up to 60 days | Length of crisis treatment, plus 30 days |
| How it ends | After 60 days, or earlier if you stop engaging | When treatment ends, plus the extra 30 days |
| Repeat use | Once every 12 months | No 12-month limit |
| Who can certify | A registered debt adviser | An approved mental health professional, via a nominated point of contact |
The mental health crisis route recognises that someone in crisis may be in no position to deal with creditors, so its protections last as long as the treatment does, however long that may be, with no annual limit on use.
What you still need to do
Breathing Space is a chance to get advice, not a holiday from all your responsibilities. While it is in force you are generally expected to:
- Keep up with ongoing liabilities you can afford, such as rent, mortgage, council tax and utility bills.
- Engage with debt advice, since the whole point of the scheme is to reach a longer-term solution.
- Not take on new borrowing above a small threshold during the period.
If you stop engaging with the process during a standard Breathing Space, it can be cancelled at a midway review. The scheme is there to support people who are actively working towards a resolution.
How to apply
You cannot apply for Breathing Space directly yourself. It has to be started by a registered debt adviser, which means a debt charity or an FCA-authorised debt advice firm. The adviser will look at your finances, check that you are eligible, and if it is appropriate, enter your details on the official register. Creditors are then notified automatically.
This is one reason getting advice is so valuable: the same conversation that could lead to a Breathing Space will also explore the wider options for dealing with your debt. Free, impartial help is available from Citizens Advice, StepChange, PayPlan and MoneyHelper, and the scheme itself costs nothing. Having an honest picture of your finances first helps; our guide on how to make a budget is a useful starting point.
What happens when it ends
Breathing Space is temporary, so it is important to use the time well. When it finishes, the legal protections fall away: interest, fees and charges can resume, and creditors can once again contact you and take enforcement action on any debts not yet resolved.
That is why the period is meant for getting advice and putting a longer-term plan in place, so that by the time protection ends you have moved on to a sustainable arrangement. Acting early, before debts spiral, gives you the widest range of options. Responsible lenders understand this: UK lender Credicorp, for instance, describes how it supports customers when their circumstances change, and engaging with creditors like this alongside formal advice tends to produce better outcomes than waiting.
The bottom line
The Breathing Space scheme gives people in problem debt legal protection from most creditor action, with interest and enforcement frozen, while they get advice. The standard route lasts up to 60 days and the mental health crisis route lasts as long as treatment plus 30 days. It does not reduce your debt, you still pay ongoing bills, and you apply through a registered debt adviser rather than directly. Used as intended, as a calm window to take free advice and choose a lasting solution, it can be the turning point that gets debt back under control.
Frequently asked questions
What is the Breathing Space scheme?
It is a government scheme in England and Wales, officially called the Debt Respite Scheme, that gives people in problem debt legal protection from most creditor action while they seek advice. Most interest, fees and enforcement on qualifying debts are paused. This is general information, not financial advice.
How long does Breathing Space last?
The standard route lasts up to 60 days. The mental health crisis route lasts for the duration of the person's mental health crisis treatment, plus a further 30 days, however long that is.
How do I apply for Breathing Space?
You cannot apply directly. You go through a registered debt adviser, such as a debt charity or an FCA-authorised firm, who assesses your situation and starts the process if it is suitable. The service is free.
Do I still have to pay during Breathing Space?
Yes, you are expected to keep paying ongoing liabilities such as rent, council tax and any agreed amounts you can afford. The scheme pauses enforcement and interest on the debts included, but it is a period to get advice, not a payment holiday from everything.
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